EUROPEAN UNION: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Catherine Moreddu
Email: catherine.moreddu@oecd.org
Tel :	(33-1) 45 24 95 57	Fax :	(33-1) 45 24 18 90

DEFINITION AND SOURCES

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

Market Price Support (MPS) and CSE by commodity in Table 2 are calculated for the following commodities: common wheat, durum wheat, maize, barley, oats, rice, sugar, milk, beef and veal, pig meat, poultry meat, sheep meat, eggs and potatoes. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

European Union (EU) corresponds to EU-12 for 1986-94 and to EU-15 from 1995 onwards, and includes ex-GDR as from 1990. From 2004, parallel estimations are presented for EU-15 and EU-25. Levels of production and consumption are on a crop year for crops and on a calendar year for livestock products. For example, 2000 production and consumption data for crops refer to the crop year 2000/01. Producer price and reference price for all products are on a calendar year. Budgetary payments are on a fiscal year basis.

EAGGF Guarantee Fund expenditures: Spending under the EAGGF Guarantee fund covers direct payments to farmers, market intervention measures, export refunds, as well as co-financing with national budgets for agri-environmental, afforestation and early retirement measures. With the Agenda 2000 CAP reforms, the EAGGF Guarantee fund has become almost the only source of funding for all agricultural expenditure. Payments and levies for cereals in fiscal year t+1 are allocated to the PSE in year t. For example, 2000 refers to fiscal year 2001.

EAGGF Guidance Fund expenditures: The EAGGF Guidance fund section, which is one of the EU's Structural Funds, co-finances measures to assist structural change in the agricultural sector and to promote rural development. Specific measures include investment aid, schemes to help young farmers set up for the first time, training activities, support for processing and marketing of agricultural and forestry products and rural infrastructure projects. With the Agenda 2000 CAP reforms, the EAGGF Guidance fund finances rural development measures under Objective 1 (regions which are lagging behind) and the EU rural development initiative (LEADER PLUS).

National policies: Expenditures by EU member States (national contribution to EU payments or pure national), mainly on a fiscal year basis, were, as far as possible, disaggregated into TSE categories. Notwithstanding the progress made, the degree of detail still varies across countries and policy coverage is not yet comprehensive, particularly for those countries for which sub-national measures are important.

Table 1. EUROPEAN UNION: Total Support Estimate

Definitions:

I. Total value of production (at farm gate): total agricultural production valued at farm gate prices, i.e. value (at farm gate) of all agricultural commodities produced in the EU [1].

1. Of which share of common commodities (%): share of commodities for which MPS is explicitly calculated (in Table 2) in the total value of agricultural production.

II. Total value of consumption (at farm gate): consumption of all commodities domestically produced valued at farm gate prices, and estimated by increasing the value of consumption (at farm gate) of the MPS commodities according to their share in the total value of agricultural production [(II.1) / (I.1) x 100].

1. Of which MPS commodities: sum of the value of consumption (at farm gate prices) of the MPS commodities produced in the country as indicated in Table 2.

III.1 Producer Support Estimate (PSE): associated with total agricultural production, i.e. for all commodities domestically produced (Sum of A to H, when negative, the amounts represent an implicit or explicit tax on producers).

A. Market Price Support: on quantities domestically produced (excluding for on-farm feed use -- excess feed cost) of all agricultural commodities, estimated by increasing the MPS for the common commodities according to their share in the total value of agricultural production [(A.1) / (I.1) x 100].

1. Of which MPS commodities: sum of the MPS (net of price levies and excess feed cost) for the MPS commodities as calculated in Table 2.

B. Payments based on output

1. Based on unlimited output

Arable crops

Market bonus for oilseeds (Budget item B1-1070 in the 1998 EC Budget): payments per tonne to producers for covering the orderly marketing of soyabeans, rapeseed and sunflower seed pursuant to Article of Reg. 1765/92.

Aid to small cereal producers (1992-93) (Budget item B1-1031 in the 1995 EC Budget): payments per tonne to small cereal producers.

Agri-monetary aid (Budget item B1-390 in the 1998 EC Budget): Payments to farmers, processors and traders in countries with strong currencies following the 1995 reform of the agri-monetary system (Reg. 2611/95); subject to a ceiling per country, degressive and temporary (three years). As a result of the introduction of the single currency on 1 January 1999, the agri-monetary system was reformed involving, in particular the abolition of the "green rate" and the introduction of transitional measures to deal with compensation for reduction in income arising from the introduction of euro to all EU Members (Reg. 2800/98; Reg. 3813/98). As disaggregated data are not available, information from EU Members was used to allocate the payments to different categories. 45% are allocated under B.1 (payments on unlimited output), 35% under E.1 (payments based on variable inputs), 10% under L (infrastructure) and 10% under M (marketing).

Rice

Production aid for indica rice (Budget item B1-1857 in the 1996 EC Budget): payments per tonne to encourage rice growers to switch from the traditional round/medium grain production to certain varieties of rice of the Indica type (Reg. 1418/76, Art. 8(a); Reg. 3878/87, Reg. 2580/88).

Other intervention (Budget item B1-1859 in the 1998 EC Budget) (1986-91): a degressive production-linked payment to Portuguese rice producers, based on the previous year’s production.

Dairy

Non-marketing and herd conversion schemes (Budget items B1-2060 in the 1998 EC Budget): under the non-marketing scheme, producers accepting not to deliver milk for a five year period, receive payments based on their deliveries in the previous twelve months. Under the conversion scheme, producers guaranteeing to convert from dairying to beef or sheep over a four year period receive payments. These two schemes became collectively known as "SLOM".

POSEIMA (Reg. 91/315) (Budget item B1-2511 in the 1998 EC Budget) and Smaller Aegean islands (Reg. 2019/93) (Budget item B1-2513 in the 1998 EC Budget): payments per tonne for on-farm stockholding of local cheese.

POSEIDON (Budget item B1-2510): Payment per tonne of milk produced.

Stock-farming (1987-93) (Italy; Reg. 1944/81): output payments to dairy farmers.

Honey

Smaller Aegean islands (Reg. 2019/93) (Budget item B1-2513 in the 1998 EC Budget): payments per tonne for on-farm stockholding of honey.

Fibre Plants

Production aid for fibre flax and hemp (Budget items B1-1400 and B1-1402 in the 1998 EC Budget, correspondingly): production aid per hectare of harvested area.

On-farm storage (Budget items B1-1409 in the 1998 EC Budget): payments per tonne for on-farm storage of fibre.

Silkworms (Budget items B1-142 in the 1998 EC Budget): payments per box of eggs produced successfully.

Ananas: Payment per tonne of pineapple produced in the Açores (POSEIMA, Budget Item B1-1831).

Tobacco

Premiums for tobacco (1986-1992) (Budget item B1-171 in the 1998 EC Budget): Aid per kilo of raw leaf tobacco paid directly to growers who have signed a European cultivation contract, but member States may choose to pay it via the first processor. Since 1993, there is a maximum guarantee threshold for the whole EU set at 350 000 tonnes and the payment is included under B.2 below.

Conversion premium (Budget item B1-173 in the 1998 EC Budget): A three-year programme implemented in 1993 for the conversion of certain tobacco varieties to other varieties or agricultural products.

· National expenditures

Agri-monetary compensation (UK): payments to compensate farmers for losses stemming from euro/sterling fluctuations (EU Reg. 2799/98, 2800/98).

Egg and wool schemes (UK): deficiency payments for wool and eggs, operated by the respective marketing Board. Discontinued in 1990/91 and 1994/95, respectively.

Sheep scheme (UK): payments to compensate UK sheep producers for the shortfall in returns from marketing sheep from in areas affected by the Chernobyl disaster in 1986.

Reimbursement of sugar excise tax to sugar beet producers (Lithuania, from 1999): budgetary expenditures.

Payments to high quality milk (Poland, from 2002): Payments to farmers per tonne of high quality milk.

Compensation payments for milk (Czech Republic until 2004): Payments per litre of milk sold to the market.

Deficiency payments (Hungary until 2004): Payments per tonne of marketed output of specific livestock products covering the difference between the guide price and the price paid by processors. Farmers have to apply for the payment with proof (by a selling contract) of the level of deliveries and the price obtained.

Storage assistance (Hungary): Payment for cereals stored until beginning of intervention buying-up.

Quality payments (Hungary until 2004): Payments per tonne of marketed output of a high quality product (beef, cow milk, sheep milk, goat milk, pigmeat, poultry). In 2001, quality payments were extended to some vegetable products: onions, pepper, potatoes for human consumption, tomatoes for industrial processing and sweet maize.

Pre-accession Direct Payments (Top-up) (Hungary): Payments per tonne of milk.

Assistance to milk producers (Hungary): Aid to processors conditional on paying a determined minimum price to producers.

Support for cultivation of flax (Latvia from 2004): payments per ton to realized flax fibre if purchase contract signed with primary processors.

2. Based on limited output

Arable crops

Production aid for oilseeds (1986-91) (Budget item B1-126 in the 1992 EC Budget): Until 1991, support to oilseeds (rapeseed, soyabeans and sunflower seed) was in the form of deficiency payments per tonne (combined with a system of intervention buying) paid through oilseed crushers. There was no ceiling to the total amount of payments which an individual farmer may receive, nor there was a limit for the EU as a whole to the total quantities of oilseeds eligible for payments. Maximum guaranteed quantities (MGQs), or production ceilings, were introduced in 1982/83 for rapeseed, 1984/85 for sunflower seed and 1987/88 for soyabeans.

Dairy

Payments per tonne of milk to compensate for change in quota for producers who had taken the non-marketing and conversion schemes during the late 1970s and early 1980s and who wished to return to dairying, after having ceased milk production for the five year required ("SLOM quota", see category B.1 above).

Compensation for temporary suspension of quotas (Budget items B1-2067 in the 1995 EC Budget); Compensation for non-allocation of milk quotas (temporary) (Budget items B1-2090 in the 1998 EC Budget); Purchase of milk quotas (Budget items B1-3803 in the 1995 EC Budget); Non-commercialisation of milk (Reg. 1078/77, EAGGF Guidance).

Dairy premium and supplement to dairy premium: Payment per tonne of milk quota introduced in 2004 to compensate producers for the reductions in interventions prices for butter and skimmed milk powder decided under the 2003 CAP reform. To be incorporated into the single farm payment scheme later on.

Olive oil

Production aid (Budget items B1-1210 in the 1998 EC Budget) and Schemes related to production of olive oil (Budget items B1-1211 in the 1998 EC Budget): production aid per tonne to olive producers.

Protein plants

Production aid for peas and field beans (Budget items B1-131 in the 1998 EC Budget): payments per tonne.

Production aid for lupines (Budget items B1-132 in the 1998 EC Budget): payment per hectare for harvested area (Reg. 1577/96). There is a maximum guaranteed area of 400 000 hectares.

Bananas

Production aid for bananas (Budget items B1-1508 in the 1998 EC Budget): payments per tonne to compensate EU producers for the loss of income that may arise from the application of the EU import arrangements for bananas following the Uruguay Round Agreement on Agriculture.

Tobacco

Premiums for tobacco (1993-onwards). see category B.1 above.

· National expenditures

Scheme for the subsidisation of milk quota restructuring (Ireland): payment per litre to small dairy producers for purchasing additional quota. The eligibility criteria comprise: maximum quota, income ceiling (certain percentage of farm household income must come from agriculture), stock density (producers whose stock density is below 1.4 LU per hectare) and permanency (producers must remain in milk production until the end of the quota system or the year 2 000, whichever is the earlier).

Potatoes scheme (UK): deficiency payment to registered producers on authorised "quota" areas; operated by the Marketing Board and discontinued in 1993/94.

Dairy premium and Dairy premium supplement (Slovenia 2005): payment per animal.

C. Payments based on area planted/animal numbers

1. Based on unlimited area or animal numbers

Arable crops

Production aid for durum wheat (1986-93): per hectare payment for durum wheat planted in traditional production zones.

Other intervention for cereals (Budget item B1-1029 in the 1998 EC Budget): payment per hectare to durum wheat, barley, triticale, maize and sorghum planted in Portugal, of which 65% is financed by the EU.

Other intervention for rice (Budget item B1-1859 in the 1998 EC Budget) (1992-onwards): special measures to rice farmers in Portugal affected by the 1992/93 drought (Reg. 3653/90).

Land management measures to reduce the use of fertilisers: crop specific, per hectare payments under agri-environmental measures (EC Reg. 2078/92).

Organic farming: payments to producers for producing cereals with organic farming practices under EC Reg. 2078/92 and the RDR.

Sugar

POSEIDON (Reg. 89/687), (Budget item B1-1830 in the 1998 EC Budget): per hectare payments for cane sugar.

POSEIMA (Reg. 91/315), (Budget items B1-1831 in the 1998 EC Budget): per hectare payments for sugar beets.

Beef

Suckler cow premiums (1986-92) (Budget items B1-2120 in the 1998 EC Budget): payment per cow granted to any milk producer not supplying milk or dairy products for twelve months; and to any dairy farmer supplying milk or dairy products whose total individual milk reference quantity does not exceed 120 000 kg, provided that he keeps, for at least six consecutive months from the day on which the application is made, a number of suckler cows at least equal to 80% and of heifers at most 20% of the number for which the premium was requested. The transfer and temporary leasing of premium entitlement is permissible between producers. As of 1992, claims for the premium is subject to a maximum stocking density limit of 2.0 LU (livestock unit) per hectare devoted to forage for the animals for which a premium application is made (Reg. 3886/92).

Beef special premium (1986-92) (Budget items B1-2121 in the 1995 EC Budget): payment granted to male cattle within ceilings set at regional level on up to 90 animals per age bracket per calendar year and per animal (Reg. 805/68). Claims for the premium are subject to a maximum stocking density limit of 2.0 LU (livestock unit) per hectare devoted to forage for the animals for which a premium application is made.

Additional premiums for suckler cows (Budget items B1-2127 in the 1995 EC Budget): additional payment granted by EU member States (e.g. Portugal) not exceeding ECU 30.19 per cow, and with the first ECU 24.15 chargeable to the EAGGF Guarantee Section. It is applicable on holdings in regions regarded as lagging behind in their development and in member States specialising in suckler herds.

Suckler cow premium for mixed herds (Budget items B1-3804 in the 1995 EC Budget): see suckler cow premium above.

POSEIMA (Budget items B1-1831 and B1-2511 in the 1998 EC Budget): specific premiums for dairy cows; additional premium for fattening bovine animals (Reg. 91/315).

Sheepmeat and goat meat

Ewe and goat premiums (1986-92) (Budget items B1-2220 in the 1998 EC Budget): annual ewe payment calculated on the basis of income shortfall, when the EU average market price is less than the basic price. A technical coefficient representing the annual average lamb meat production from ewes producing heavy lambs is then applied to the income loss to determine the rate of ewe payment. A payment is also granted for goats in certain mountain areas and LFAs if goat-breeding is mainly intended for production. From 1993 marketing year an individual limit on premiums was introduced (Reg. 3567/92) and the payment is included under C.2 below. Limits are based on the number of eligible claims made in respect to the 1991 marketing year. Up to the end of the 1994 marketing year, the full payment was granted up to a limit of 1000 animals per producer in LFAs and 500 in the other areas; above these limits, 50% of the payment was granted. Rights to premium are transferable and may also be leased (Reg. 3567/92). Although the payment is not subject to any stocking density criteria, but the number of ewes upon which payment is claimed will be relevant when determining stock density levels for beef special premium and suckler cow premium claims.

Fixed ewe and goat premium in LFA and mountain areas (1986-92) (Budget items B1-223 in the 1998 EC Budget): since January 1991, producers in LFAs are eligible for a supplementary flat rate payment in addition to ewe premium. The payment of this supplement is subject to the same conditions as the payment of ewe premium.

Olive oil

Frost damage olive groves (EAGGF Guidance Fund, Reg. 122/88; Reg. 1654/86): budgetary expenditures on measures for replanting and converting olive groves damaged by frost.

Smaller Aegean islands (Reg. 2019/93), (Budget items B1-1833 in the 1998 EC Budget): per hectare payments for olive groves.

Wine

Smaller Aegean islands (Reg. 2019/93), (Budget items B1-1833 in the 1998 EC Budget): per hectare payments for vineyards.

Hops

(Budget item B1-181 in the 1998 EC Budget): payment per hectare based on historic average planted area.

Potatoes

POSEIMA (Reg. 91/315), (Budget items B1-1831 and B1-2511 in the 1998 EC Budget) and POSEICAN (Reg. 91/314), (Budget item B1-1832 in the 1998 EC Budget): per hectare payments for potatoes.

· National expenditures

Suckler cow premiums (France, Germany, Greece, Italy, Spain and Austria, 1986-92): see above.

Ewe and goat premiums (Austria, Greece): see above

Special premium for male cattle (Austria): payment per head of animal.

Premium for keeping farm animals (Austria): payment per head of animal.

Premium for oilseeds and protein plants (Austria): payment per hectare of planted area in oilseeds.

Other premia (Austria): Other payments.

Frost damage aid (Austria): payment per hectare of affected area.

Drought damage aid (Austria): payment per hectare of affected area.

Disaster payments (Denmark, Finland, France, Italy, Luxembourg and Spain): payments to cereal producers to compensate for crop damage due to natural disaster. In Finland, 50% is allocated to crop area payments and 50% to grass (E1).

Aid to pig producers (Ireland): payments to pig producers affected by fires at the border Ireland/Northern Ireland in 1998. The scheme contributes towards interest costs where farmers have agreed debt restructuring arrangements with banks.

Compensation for damage caused by flooding (Finland): Disaster payment

Exceptional assistance to young cattle breeder (France): Payments per cattle targeted to the most vulnerable farms, in particular younger farmers.

Stabilisation programme for wine, 1986-87 (Germany): Payment per hectare of vineyards to stabilise the domestic market. Calculated on a fiscal year basis.

Adjustment programme for the dairy industry, 1992-94 (Germany): Payment per cow to facilitate structural adjustment in the East German dairy industry after reunification. Calculated on a fiscal year basis.

Disaster Payments (Netherlands, Portugal): Direct payments.

Harvest losses, 1998 (Netherlands): Direct payments.

Special aid for cereals (Portugal): payment per hectare of cereals (except maize and rice).

Premium for indigenous races of cattle (Portugal): payment per head (see above).

Dried fruits (Spain): per hectare payments to dried fruit producers affected by erosion or drought.

Organic production (Sweden): in 1989 a temporary compensation scheme to farmers for acreage converted to organic production and for acreage continuing under organic production. Payments per hectare (arable land or pasture) granted for a three year period, although production must be carried out during six years, for acreage cultivated with price support regulated crops, except for the first year when pasture and ley on arable land was included. As data do not allow a distinction between crops and pasture, 50% is allocated to this category and 50% to category E1.

Traditional, environmentally friendly cultivation of local varieties of brown beans (Sweden): per hectare payments to compensate for cultivation of brown beans in the traditional cultivated area.

Conservation of local breeds threaten by extinction (Sweden): payment per livestock unit to improve the conditions for continued breeding in order to conserve the genetic resources of domestic animals as an important contribution to biodiversity

Support for reindeer husbandry farms (Sweden): price support for reindeer meat, compensation for animals lost to predators, and furthering reindeer husbandry.

Over Thirty Month Scheme (OTMS) (United Kingdom): Payment per head introduced in May 1996 as a market support measure to remove cattle from the market and pay compensation to producers for cattle aged over thirty month that could no longer enter the food chain.

Support to bee keeping (Czech Republic, Sweden): Payment per colony of bees.

Payments for integrated production of fruits and vegetables (Czech Republic): National expenditures.

Payments for catch crops (HRDP) (Czech Republic): Payment per hectare of catch crops (environmental protection) implemented within the Rural Development Plan.

Payments for energy plants (Czech Republic, National aid scheme, from 2005): Payment per hectare of specific energy plants.

Payments for poppy seed (Czech Republic, National aid scheme, from 2004): Payment per hectare of poppy seed supporting harvesting which ensures safety as regards narcotic and psychotropic substances.

Ad hoc payments (Estonia, 2004): per hectare payments to crop producers to compensate losses due to natural disasters.

Pre-accession Direct Payments (Hungary until 2004): Payment on all agricultural land; Payment per head for suckler cows; and Payment per head for ewes.

Area-based payment for crop production (Hungary, from 1999 to 2004): payments per hectare of specific crops.

Payments to the purchase and breeding of animals (Hungary, from 1995). Payments per head.

Disaster payments (Hungary): Payments to compensate overall revenue losses from disasters.

Payments for relief from damage caused by wild animals (Hungary): Direct payments.

Payments for high quality crops (Latvia, 2004): payments per hectare.

Pedigree cattle payments (Latvia, 2004): headage payments.

Area payments (Latvia, 2004): payments per hectare for vegetables, rapeseed, flax.

Headage payments (Latvia, 2004): headage payments for development of dairy farming.

Payment for sawn area (Latvia, 2004): area payments.

Disaster losses compensations (Lithuania, 2004): per hectare payments.

Payments for natural disaster relief and assistance (Poland, since 1997): budgetary expenditures.

Area aid (Slovenia from 2004): payment per hectare for seeds, sugar beet.

Headage payments (Slovenia from 2004): payments per animal for horses, cattle, pigs, sheep.

Payments per hive for bee keepers (Slovenia from 2004): budgetary expenditures.

Complementary National Direct Payments CNDP (Czech Rep., Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Rep. from 2004): payments per hectare or animal numbers (so called top-up payments) for hop, sheep and goat meat (until 2004), suckler cows (until 2004), cattle, high quality seeds for fodder crops (until 2004), flax and starch potatoes in the Czech Republic; arable crops, cattle and ewes in Estonia; for arable crops, oilseeds, rice; tobacco, and bulls in Hungary; for seeds, dairy cows, pigs, ewes, suckler cows in Latvia; for grains, rapeseed, starch potatoes, fiber flax, suckler cows, bulls, slaughtered adult cattle, ewes in Lithuania; hop, tobacco, crops on arable land, sheep and goat meat, and suckler cows in the Slovak Republic.

2. Based on limited area or animal numbers

Arable crops

Compensatory payments (1993-onwards) (Budget item B1-104 and B1-105 in the 1998 EC Budget): payments per hectare, calculated on historic regional yields (1986-90), granted on condition that producers set aside a defined percentage of the eligible land (with the exception of small producers). Introduced by the 1992 CAP reform to compensate cereal, oilseed and protein crop (peas, field pea beans, sweet lupins and non-textile flax seed) producers for the reduction or abolition of institutional prices (Reg. 1765/92).

Set-aside linked with per hectare aid (1993-onwards) (Budget item B1-1060 in the 1998 EC Budget): payments for set-aside area related to per hectare compensatory payments, determined by multiplying the fixed amount per tonne by the regional cereals reference yields (average yield of the 1986-90 period) and the area set-aside. This area may either be used for non-food purposes or taken out of production, with the possibility of rotation, afforested or used for non-agricultural purposes.

Supplementary aid for durum wheat (1994-onwards) (Budget item B-1055 in the 1998 EC Budget): supplementary payment per hectare to durum wheat producers in certain economically disadvantaged regions of Italy, Spain, Greece, France, Austria and Portugal. There is a limit to a total area eligible for the payment, which varies among member States.

Encouragement for growing traditional cereal (1992-94), (Budget item B1-3801 in the 1994 EC Budget): payment per hectare of cereal cultivated under traditional farming practices.

Other aid and assistance for arable crops (Budget item B1-1079 in the 1996 EC Budget) (refers to oilseeds); Direct payments to oilseeds producers (1993) and Other interventions for oilseeds (1992) (Budget item B1-128 in the 1992 EC Budget) (payments per hectare for the 1992/93 marketing year).

Payment to arable crops from 2005: payment per hectare of crops including former compensatory and set-aside payments. Quality premium for durum wheat from 2004: payment per hectare in traditional production zones provided to farmers who are using a certain quantity of certified seeds of selected varieties.

Payments to protein crops from 2004: payment per hectare of protein crops for a maximum guaranteed area of 1.4 million hectares.

Payments to energy crops from 2004: payment per hectare outside set-aside provisions for a maximum guaranteed area of 1.5 million hectares.

Payments to starch potatoes from 2004: payment per tonne of starch potatoes.

Regional payment to crops (drying aid) from 2004: supplementary payment per hectare of crops to farmers in Nordic regions for drying aid.

Area payment for nuts from 2005: payment per hectare of nuts for a maximum guaranteed area of 800 000 hectares divided into fixed national guaranteed areas for almonds, hazelnuts, walnuts, pistachios and locust beans.

Rice

Per hectare payments for rice (Budget item B1-1858 in the 1998 EC Budget): payments introduced in 1997/98 marketing year to compensate rice producers for a 15% cut in the intervention price. They are similar to the compensatory area payments for cereals, are based on historic national yields for the years between 1993/94 to 1995/96 and are subject to a ceiling on the area.

Beef

Suckler cow premiums (1993-onwards) (Budget items B1-2120 in the 1998 EC Budget): see category C.1 above

Additional premiums for suckler cows (1993-onwards) (Budget items B1-2121 in the 1998 EC Budget): see category C.1 above

Beef special premium (1993-onwards) (Budget items B1-2122 in the 1998 EC Budget): see category C.1 above

Deseasonalisation premiums (Budget items B1-2123 in the 1998 EC Budget): payments per animal to producers for withholding supplies at certain times of the year. When the number of male bovines slaughtered in a Member state between 1 September and 30 November exceeds 35% of the annual slaughtering of male bovines, an additional premium is granted. It is payable on degressive basis starting at ECU 72.5 per animal and is payable on animals that have already received the beef special premium and are slaughtered between 1 January and 30 April. By the end of the payment period the premium declines ton ECU 18.11. In practice this premium has only operated in Ireland and Northern Ireland.

Extensification premiums (Budget items B1-2125 in the 1998 EC Budget): complementary payment for producers with a stocking density of less than 1.5 LU per hectare, for whom the special and/or suckler cow premium are increased by ECU 36.2 or by ECU 52 if stocking is at less than 1 LU per hectare.

POSEIDOM (Reg. 89/687): complementary payments for suckler cows (Budget item B1-2510 in the 1998 EC Budget).

Sheepmeat and goat meat

Ewe and goat premiums: from 1993-onwards. See category C.1 above

Fixed ewe and goat premium in LFA and mountain areas: from 1993-onwards. See category C.1 above.

Fruits and vegetables

Specific measures (Budget items B1-1517 in the 1998 EC Budget): payment per hectare for asparagus planted for processing. It is a temporary scheme for three years, limiting to 9 000 hectares.

Wine

Restructuring and varietal conversion system for wine (Budget B1-165 item in the 2001 EC Budget): Established with the Agenda 2000 reform to compensate for the losses in receipts due to restructuring of vineyards to improve the quality of wine as well as a contribution to the cost of restructuring. The former part is paid per hectare, there is a limit of 54 000 hectare per wine year for the whole EU and the total budget is euro 400 million. Concerning the latter part, 50% of the costs is financed by the EU (75% in the Objective 1 areas). 50% allocated to C2 and 50% to E3 (Payments based on fixed inputs).

Compensatory allowances (Reg. 2328/91, Art. 19): payments per animal to farmers of dairy cows, cattle, sheep, goats and equine animals. In LFAs other than mountainous (Art. 3.3), the payment is limited to a maximum of 20 dairy cows per holding and 1.4 LU per forage hectare of the total forage area of the holding. The scheme also provides for an aid per hectare for crop production, excluding the area used for animal feed, durum wheat, fruit trees (apples, pears, peaches), vineyards and sugarbeet and, in practice, wheat (yields lower than 2.5 tonnes per hectare are eligible). Applicants must have a holding with at least 3 hectares of utilised agricultural land and undertake to continue farming for at least 5 years.

Less Favoured Areas (LFAs) -- Title II (Reg. 268/75): payments per hectare to farmers who farm a minimum area of land and undertake to pursue their farming activity in a LFA for at least five years from the first payment.

· National expenditures

Compensatory allowances / Less Favoured Areas (Austria, Belgium, Czech Rep. (see below), Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Slovak Rep., Slovenia, Spain, Sweden and UK): see above.

Suckler cow premiums (France, Germany, Greece, Italy, Portugal, Spain, UK, Austria, Finland and Sweden): see above.

Other cattle premium (France): Headage payment to calves and adult cattle.

Ewe and goat premium (France): Payment per ewe and per goat.

Payments to other commodities (France): Headage payments.

Disaster payments (Greece): payments to compensate for production losses of specific commodities due to natural disaster. The compensation covers only a certain percentage (ranging from 50%-75%) of total loss and there is a limit on the total payment per hectare.

Agri-monetary compensation (Sweden): Additional area payment for crops.

Crop damage aid (Finland): payments to cereal producers to compensate for crop damage due to natural disaster. 50 % allocated to crop payments, 50 % to grass (E1).

Flood damage aid (Finland): disaster payment.

Disaster payments (Netherlands): payments to compensate for production losses of pigs due to natural disaster.

Deseasonalisation premium (UK): see above.

Regional assistance programmes (Germany): Regional expenditures. Data available from 2000. No specific information. Provisional classification. Calculated on a fiscal year basis.

Plant nutrient leaching (Sweden): Per hectare payment for farmers in order to encourage them to draw up cropping plans. It is being merged with other programs and may not appear as a separate payment again.

Payments for animals on extensively used pastures (Czech Republic until 2004, HRDP – agri-environmental payment): Payments for cattle, sheep, goats and horses rearing on pastures (at least 4 months a year). A payment per Livestock Unit (LU) is provided if the livestock density remains bellow 1.4 LU per hectare of pasture land. From 2005 replaced by grassland maintenance programme.

Grassland maintenance (Czech Republic from 2005, HRDP – agri-environmental payment): Payments per hectare of meadow maintained according to standard conditions; without application of fertilisers; without application of fertilisers and first mowing after 15 July; without application of fertilisers and maintenance of 6 to12 m wide belts after the first mowing; or per hectare of pasture, maintained according to standard conditions, with grazing livestock density between 0.5 – 1.25 LU per hectare or without application of fertilisers, with grazing livestock density between 0.4 to 1.05 LU per hectare.

Payments for arable land (Czech Republic Top-up 1.A): 2004: Payments of CZK 2 500 per hectare of arable land are provided to farms with minimum 10 ha of arable land which set-aside min. 5% and max. 10% of their arable land. The set-aside arable land can be used for production of rape seed for methylester production, plants for green fertilising, energetic herbs, hemp and flax (in case of flax cultivation on set-aside arable land the payment is of CZK 7 000 per hectare). 2005: Payment per hectare of arable land seeded to specific crops (grains, oilseeds, leguminous, silage and green fodder, hemp for fibre, linseed.

Support to Less Favoured Areas (Czech Republic, HRDP): Compensatory payments per hectare of grassland in agricultural land LFAs, areas with specific limitations, National Parks and Protected Landscape zones.

Headage payment (Estonia, from 2004): payment per animal for milk cows, sows and ewes.

Agri-environment (Estonia from 2004): payments per hectare to farmers under EU agri-environmental measures to reduce the use of variable inputs such as fertilisers and pesticides.

Disaster payments (Hungary, from 1997): Payments to compensate overall revenue losses from disasters (floods) not covered by insurance.

Payments for cattle (Hungary, from 2005, Top-up): Headage payments for beef cattle.

Payments for selected crops on arable land (Hungary, from 2005, Top-up): Payment per hectare of specific crops on arable land (grains, rice, tobacco).

Disaster payments for crops (Slovak Republic): Payments compensations for losses due to severe floods and droughts.

Area and headage payments (Slovenia, 2004): payments per hectare of cereals, oilseeds, protein crops, energy crops and nuts, and payments per head (Suckler cow premium, Special beef premium, Slaughter premium, Extensification premium Additional payment to beef and ewes, Ewe and goat premiums) implemented as equivalent EU funded area and headage payments.

Special Marketing Policy Programme for Maltese Agriculture (SMPPA) (Malta, from 2004): payment per hectare for tomatoes, vegetable, fruits, wine. Payment per animal for milk, pigs, poultry.

Special Aid Programme for potato producers (Malta from 2004): Payment per hectare.

Ad hoc measure for providing specific temporary support for full time farmers (Malta from 2004): payment per hectare, Guarantee section.

D. Payments based on historical entitlements

1. Based on historical plantings/animal numbers or production: none

2. Based on historical support programmes

Single Farm Payment Scheme (SFP) from 2005: Payment per hectare based on historical reference amounts of premium for most crop and livestock commodities received during the period 2000-02. The payment can be established at the farm level or at the regional level.

Single area payment scheme (SAPS) (Cyprus, Czech Rep., Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Rep., from 2004): per hectare payments applied to the whole agricultural area with a fixed rate, minimum area is 1 hectare.

Support to Less Favoured Areas (HRDP) (Slovak Republic): Specific rates of payments per hectare of agricultural land in Less Favoured Areas (mountainous and hilly areas), and areas with specific limitations (National Parks and Protected Landscape zones).

· National expenditures

National support to Northen Sweden (Sweden) and price premiums (Austria, until 1999): degressive transitional payments to producers to compensate for the decline in support following the accession of these countries to the EU.

National aid (Finland): Transitional payments to producers to compensate for the decline in support following the accession to the EU. The support is paid as additional prices, on the basis of the area and number of animals. The national measures include northern aid, national aid for Southern Finland, national supplement to environmental aid (from 2004 onwards, this was formerly national aid for crop production), national supplement to LFA (from 2005 onwards), and certain other measures.

Socio-structural income compensation (Germany): payment to farmers independent of their production decision that was introduced in place of previously existing tax concessions. The programme was in operation during 1989-94.

E. Payments based on input use

1. Based on use of variable inputs

Feed and seed payments

Production aid for dried fodder (Budget items B1-130 in the 1998 EC Budget): maximum guaranteed quantities were introduced in 1995 (Reg. 603/95), broken down into national guaranteed quantities, allocated to the EU member States on the basis of their average production in the reference marketing years 1992/93 and 1993/94. Where the MGQs are exceeded, the aid is reduced.

Silage (Budget items B1-1047 and B1-1058 in the 2001 EC Budget): payments per hectare of feed produced for silage and used on-farm under the compensatory payments for arable crops (see above). With the Agenda 2000 CAP reforms, grass silage is eligible for the arable crops are payment only in Sweden and Finland since is not possible to grow maize silage in these countries.

Seeds (Budget item B1-180 in the 1998 EC Budget). payments to seed producers.

Conversion of arable land to grassland and forage production measures: payments to convert arable land on feed production under agri-environmental measures (EC Reg. 2078/92),.

Agri-monetary aid: Rebates in insurance premia against labour accidents to compensate losses in CAP payments for agri-monetary reasons (see B.1. As disaggregated data are not available, information from EU Members was used to allocate the payments to different categories: 35% are allocated to this category, 45% are allocated to B.1, 10% to M and 10% to L.

Setting-up of young farmers (Reg. 2328/91, Art. 10 and 11; Reg. 1257/99, Art. 8): payments may comprise a single premium up to the maximum eligible amount of euro 25 000 and an interest subsidy on loans taken on with a view to covering the costs arising from setting up.

· National expenditures

Prime à l’herbe (maintaining extensive grassland) (France): payments per hectare for the maintenance of grassland areas on extensive livestock farming. Farmers have to fulfil the following obligations for 5 years and for a minimum of 3 hectares of grassland and 3 LU per holding: livestock intensity rate per hectare less than 1 LU per hectare; maintain the permanent grassland area (for at least 3 years as for temporary grassland); harvest the grass; and upkeeping the area under the scheme.

Fodder transport assistance (France since 2004): Budgetary expenditures. Nitrate Sensitive areas (UK): payments to nitrate leaching either through conversion of arable land to extensive grass or through extensification of existing intensively managed grass. The scheme is voluntary.

Promotion of catch crops (Sweden): per hectare payments to compensate for the production of catch crops to reduce nitrogen leakage.

Support for Landscape Conservation and Biodiversity (Sweden): per hectare payments for hay-making and grazing land.

Open Landscape (Sweden): Maintenance of an open landscape in Northern Sweden and in the forest regions. Payments for the maintenance of the open agricultural landscape through supporting extensive farming practices especially on natural pasture and in production of hay and silage from grass. The payment is determined by the relation between grassland and livestock at the farm. 75 % allocated to this category and 25 % to F3.

Organic Production (Sweden): half of this programme is allocated to pasture and included in this category (see category C1).

Permanent Grasslands (Sweden): aim to restrict nitrogen leaching, intensive agriculture areas, minor support, protective zones, buffer along rivers, only extensive grazing, paid per hectare, several restrictions, no pesticides, no fertilisers, only harvest after a certain date, can not grow anything else but grass.

Grazing Land, Mowed Meadows (Sweden): From spring 1998.

Semi-natural grazing land (Sweden): Budgetary expenditures.

Long leys (Sweden): No stringent conditions/restrictions attached to the payments. No pesticides used and the leys must be kept for two years. Paid per hectare.

Catch Crops (Sweden): per hectare payments to compensate for the production of catch crops to reduce nitrogen leakage

Setting-up of young farmers (Austria, Denmark, France, Greece, Ireland, Italy, Hungary, Latvia, Luxembourg, Poland from 2004, Portugal, Sweden, Lithuania from 2005, Slovenia from 2005): see above

Other installation assistance (France): Interest subsidy on loans to facilitate the transmission of farms.

Fuel tax rebates (Austria, Czech Republic, Denmark, Estonia, France, Germany until 2000, Greece, Hungary, Latvia, Lithuania, Netherlands, Poland in 1993, Portugal, Slovak Republic, Slovenia and Spain until 1989, UK since 1990): value of tax exemptions on diesel fuel for farmers relatively to the standard rate taxes on fuel. Calculated in a budget year basis.

Reduction in social security contributions (France): 50% of the value of reductions in farmers’ National Insurance contributions relative to the standard rate.

Green fallow (Germany): payment for set aside land on which farmers are allowed to grow fodder. The programme was in operation during 1987-88.

Energy savings (Germany): payment for measures that reduce energy consumption. The programme was in operation during 1995-96.

Fertiliser subsidy (Greece until 1991, Poland): national programme.

Insurance (Austria, Belgium, Hungary, Netherlands, Spain): payments to finance the difference between the price of the insurance received by the private insurance companies and the price paid by the farmer. Includes the capital losses of ENESA and the cost of reinsurance in Spain.

Crop insurance (Luxembourg, Portugal): national programme.

Animal Slaughter insurance (Luxembourg): national programme.

Electricity subsidy (Portugal): national programme.

Interest concessions (Hungary, Latvia, Lithuania, Poland, Portugal): national programme.

Water subsidies (Slovak Republic): Budgetary expenditures to finance part of the expenditure for irrigation water.

Irrigation subsidies (Spain): national expenditures on payments to finance the activities of irrigation associations and payments to public enterprises in charge of the improvement of irrigation infrastructure (50% EU co-financing).

Subsidies for storing and production of wine alcohol (Spain): Payment per liter of alcohol for wine production (50% EU co-financing).

Support to liming (Estonia): budgetary expenditures to reduce the costs of liming.

Tax concession (Estonia): income tax concession provided to small family farms estimated by the Ministry of Agriculture.

Agricultural employment (Hungary): Payments to reduce the costs of agricultural employment, financing a part of Public Health Insurance fee.

Capital aid (Hungary): Budgetary expenditures for financing farmers credit in case of bankruptcy.

Seeds (Hungary): Payments for high quality seeds.

Europe Agricultural Plan+ credit programme (Hungary from 2005): Credits extended to agriculture to finance purchase of inputs.

Preservation of genetic resources of farming animals (Estonia, Latvia from 2004, Lithuania from 2005): payment per animal for preservation of genetic resources of farming animals.

Pedigree and breeding (Latvia from 2004): budgetary expenditures for supporting pedigree and breeding in dairy farming, beef, pig, horse, sheep and goat production.

Purchase of insemination material abroad (Latvia): budgetary expenditures.

Support for herd improvement (Latvia, Lithuania): budgetary expenditures.

Support for seed production (Latvia from 2004): budgetary expenditures, payments for seeds produced and sold if seeds have been certified (EU programme).

Compensation due to national disaster (Latvia from 2004): budgetary expenditures.

Land reclamation (Latvia 2004): budgetary expenditures.

Elite seeds (Lithuania): budgetary expenditures on subsidy for purchasing high quality seeds.

Compensation of on-farm storage costs (Lithuania): budgetary expenditures.

Payments for strawberry planted (Slovenia): budgetary expenditures.

Area aid for potato seeds (Slovenia from 2005): payment per hectare.

Conservation of indigenous species (Malta, from 2004): Payment per animal for maintaining biodiversity by conserving indigenous species.

2. Based on use of on-farm services

Pest and diseases control

Measures to control epizootic diseases (B1-253 in the 1998 EC Budget).

Disease eradication and monitoring programmes (Budget item B2-5100 in the 1998 EC Budget).

Other measures in the veterinary field (Budget item B2-5101 in the 1998 EC Budget).

Plant health measures (Budget item B2-5102 in the 1998 EC Budget).

Veterinary measures for most remote regions (Budget item B2-5105 in the 1998 EC Budget).

Funds for emergency veterinary measures (Budget item B2-5106 in the 1998 EC Budget).

Transhumance (B1-250 in the 1998 EC Budget): payments per head for the transhumance of sheep, goats and cattle in Greece.

Extension services

Training and Demonstration projects: budgetary expenditures under agri-environmental measures (EC Reg. 2078/92).

Extension (Reg. 797/85): agricultural advisory services (Reg. 270/79) and pilot and demonstration projects, technical assistance, studies and dissemination results (Reg. 797/85, Art. 22).

· National expenditures

Pest and disease control (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Poland, Portugal, Slovenia, Spain, Sweden, UK)

Control of mastitis and other veterinary measures (Denmark until 2004): Payments to improve the quality of milk and dairy products and to remove the extra costs of veterinary treatment for farmers on islands without local veterinarians.

Surveillance of Transmissible Spongiform Encephalopathy, TSE (Denmark): Payments to producers to compensate the costs of running a programme of BSE testing and a programme of surveillance of TSE.

National Beef Assurance Scheme (Ireland): Budgetary expenditures from operating an animal identification and tracing system, developing and enforcing standards through a registration and approval system. Bovine tuberculosis and Brucellosis Eradication (Ireland): Budgetary expenditures on control disease services in favour of beef producers and distinct from above program of general disease control. Expenditure is net of farmer’s contributions. 20% EU co-financing.

Farmers with income problems (France): payments to farmers to finance the analysis and monitoring of farm management and facilitate pluriactivity.

Information, education and demonstration projects (Belgium, Netherlands, Sweden) concerning biodiversity in the agricultural landscape.

Dioxin compensation payments (Belgium): payments granted in 1999 and 2000 to beef and veal, pigmeat and poultry farmers to compensate for losses due to the dioxin crisis.

Land consolidation programme (Denmark until 2002, France): payments to improve the physical structure of farm holdings through land consolidation. Promille and Production levy funds (Denmark): payments for specific agricultural activities including sales promotion, research, production development, advising, training, prevention of diseases. 50% is allocated to this category. 25% to the categories I and M.

Extension and advisory services/technical assistance (Czech Republic, Denmark until 2003, Estonia from 2004, France, Germany, Greece, Hungary, Ireland, Italy, Latvia from 2004, Lithuania from 2004, Luxembourg, Netherlands, Poland, Portugal, Slovenia, Sweden): Expenditures on extension and advisory services. In Ireland, 30% of total spending on Teagasc, 50% going to research (GSSE-I) and 20% to training (GSSE-J). In Slovenia, 50% of expenditures to the agricultural extension service.

Co-operation within recognised groups (Denmark until 2002): payments to encourage cooperation among farmers to rationalise agricultural production (EU Reg. 950/97).

Vocational training (Denmark, Netherlands, Estonia from 2004, Latvia from 2004, Lithuania from 2005). EU Reg. 2328/91 then RDR.

Assistance to low income farmers (France): Payments to finance farm audits and for conversion to other activities. Pre-planning assistance (Germany): Technical assistance for amelioration measures.

Assistance for pilot projects related to new production systems/techniques (Luxembourg): expenditures.

Promoting meat quality (Spain): Payments to cover the extra costs of controlling the quality of beef meat.

Agri-environmental measures (Spain): 50% EU co-financing. Labour replacement, health care schemes (Belgium, Denmark, Sweden)

Resource-efficient conventional agriculture (Sweden): Advisory service, training and information to farmers.

Training in environmental matters (Sweden): Budgetary expenditure. Operation Programme (Czech Republic from 2005, EU co-funded): Investment grants covering 50% of the investments in animal production to improve hygiene standards.

Breeding control (Slovenia): 70% of all budgetary transfers to the breeding control service. Payments to chemical agricultural stations (Poland): budgetary expenditures.

Payments to geodetic services (Poland): budgetary expenditures.

Assistance to the purchase of breeding animals (Hungary): Payments to farmers to reduce the costs of purchasing breeding animals.

Ear tags/tattoos (Malta, from 2004): budgetary expenditures.

Testing for BSE, trichinella Burecellosis and Tuberculosis (Malta, from 2004): budgetary expenditures.

Compensation of additional costs for the transportation of Gozitan Agriculture and fisheries produce to Malta (Malta, from 2004): budgetary expenditures.

Biological pest control (Malta from 2004): budgetary expenditures on refunds (50%) on the purchase of Biological Insects for best control.

3. Based on use of fixed inputs

Restructuring and varietal conversion system for wine (Budget B1-165 item in the 2001 EC Budget)

Restructuring of fruits and vegetables (Budget B1-1509 item in the 2001 EC Budget): Payments for the restructuring of the sector in Greece, France and Italy (Reg. 3816/92). The EU financed 75% of the cost during a three-year period.

Soil improvement measures: budgetary expenditure under agri-environmental measures (EC Reg. 2078/92).

Livestock: Budgetary expenditures for assisting animal re-production in Madère and Açores (POSEIMA Reg. 91/315, Budget items B1-2511 in the 1998 EC Budget), in certain remote areas (POSEICAN Reg. 91/314, Budget item B1-2512 and B1-2512 in the 1998 EC Budget) and in Smaller Aegean islands (Reg. 2019/93: budget item B1-2513 in the 1998 EC Budget).

Completion of measures for the improvement of agricultural structures in Portugal and Greece (Budget item B5-421 in the 1998 EC Budget): interest rate subsidies on European Investment Bank loans to farmers for on-farm investment.

Wine making (Greece) (Reg. 895/85): payments to farmers to improve the structures of the wine making sector in Greece.

Wine-growing in Portugal (Reg. 2239/86): payments to farmers to modernise on-farm vine-growing.

Farm modernisation or investment in farm holdings (Reg. 159/72; Investment (Reg. 2328/91, Art. 7): Budgetary expenditures. With the Agenda 2000 CAP reforms, the aim is to modernise agricultural holdings and improve their viability (Reg. 1257/99, Art. 4-7). Payments are not linked to production and cross compliance is an important element for eligible investments. The total amount of support is limited to a maximum of 40% (50% in LFAs) of the volume of eligible investment. When investments are undertaken by young farmers the above percentages may reach a maximum of 45% (55% in LFAs).

Drainage (Reg. 78/628; Reg. 79/197) (Ireland, N. Ireland).

Irrigation programme in Corsica, Mezzogiorno and Greece (Reg. 79/173)

Capital grants for on farm investments (Czech Rep. Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Rep., Slovenia): budgetary expenditures on investment grants from SAPARD and National Development Plan funds.

· National expenditures

Capital grants(Belgium, Czech Republic, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Malta, Netherlands, Portugal, Spain, Sweden, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Rep., Slovenia): payments for farm modernization, improvement and investment (from 2000, includes investment in farm holding RDR measure, from 2004 includes SAPARD and NDP funds in new member states).

Interest concessions (Austria, Belgium, Czech Republic, Finland until 2000, France, Germany, Greece, Italy, Malta, Netherlands, Spain, Poland, Portugal): interest subsidy for farm modernization, improvement and investment, interest subsidies for horticultural enterprises, interest subsidy for rural businesses, for farmers affected by natural disasters (drought in Spain), etc..

Disaster restoration (Germany, Greece, Ireland, Spain): capital grants to restore farm assets due to natural disaster.

Disaster payments (France): 50% of government contributions to the agricultural disaster fund (Fonds de garantie contre les calamités d'origine agricole) plus interest subsidies on emergency loans. 50% of government expenditures assumed to be compensation payments and interest subsidies.

Assistance to mechanisation in mountainous areas (France) until 1991: National expenditures on interest subsidies to loans for the purchase of farm machinery.

National funds for water infrastructure improvement (France): Government subsidies to the funds. Irrigation (France): Government subsidies to drainage and irrigation projects.

Assistance to group agriculture (France): National expenditures on capital grants. Water emergency (Netherlands): The 1995 Great Flood.

Fruit tree clearance (Austria): budgetary expenditures.

Improvement of Dairy Hygiene Standards (Ireland): payments based on the size of the applicant’s quotas, geared towards smaller farmers and payable to applicants whose gross off-farm income is less than certain reference income.

Livestock farm building improvements (France, Ireland): National expenditures on capital grants and interest subsidies to loans.

Control of Farm Pollution Scheme (France, Ireland): payment to farmers to help improve certain farm buildings, storage facilities for fodder and agricultural wastes, etc subject to investment ceilings.

Agricultural investment with the aim of protecting and improving the environment (Denmark until 2003): Aid to farmers investing in storage facilities to meet environmental requirements. Reparcelling (Denmark): Payments to improve the conditions of the holdings.

Enhancing technical innovation in agriculture (Spain): 75% EU co-financing. Payments for technically innovating investment, for technical innovation in seeds and high quality plants. Improving management and marketing in livestock farms (Spain): 75% EU co-financing.

Promoting bee-keeping (Spain): 50% EU co-financing. Payments for investment in bee-keeping activities.

Promoting milk quality (Spain): Payments for investment in infrastructure oriented to improve the quality of milk.

Enhancing high quality reproduction (Spain)

Auction of pure breeds (Spain): Payments to facilitate the participation in auctions and animal fairs.

Extensive livestock and indigenous breeds under extinction risk (Spain): Payments for investment on land and habitat for indigenous livestock breeds.

Adapting the olive tree varieties (Spain): 50% EU-co-financing.

Restructuring crops (Spain): 50% EU-co-financing.

Farm Conservation Grant Scheme, Agricultural Improvement Scheme, Agriculture and Horticulture Development Scheme (UK): capital grants to farmers.

Infrastructure (Belgium): 20% of total payments for land consolidation and rural roads.

Support for economic growth (Belgium): interest concessions, capital premiums, employment premiums, etc, granted by regional budgets to support investments in food and feed industry for the creation, development, conversion or modernization of industrial or craft enterprises.

Debt relief and rescheduling schemes (Denmark, Germany, Greece): payments to ease the financial costs of farmers’ debts.

Establishment of shelter belts (Reg. 2080/92) (Denmark): Payments to prevent sand drift.

Storm damage assistance (Germany): payments for storm damage relief. The programme was in operation during 1991-96.

Drought damage assistance (Germany): payments for draught damage relief. The programme was in operation during 1992-94.

Payments for relief from natural disasters (Germany): Federal expenditures from 2000 plus regional expenditures from 1997. No specific information. Calculated on a fiscal year basis.

Renewable resource use and investment (Germany): payments to encourage the use of renewable resources. The programme was introduced in 1991.

Pilot programmes (Germany): payments to encourage the adoption of new farming practices.

Interest concessions in New Länder (Germany): reduction in interest rate for credits in New Länder. The programme was introduced in 1991.

Bank reimbursement (Germany): payments to cover the costs of concessionary credits

Irrigation programme (Portugal): EU co-financed programme in favour of small traditional on-farm irrigation.

Drainage and soil conservation (Ireland, Portugal): EU co-financed programme.

Replacement Services (Sweden): Budgetary expenditures.

Horticultural project (Sweden): Budgetary expenditures.

Rural development (Finland): Budgetary expenditures.

State aid for the promotion of rural businesses (Finland): Budgetary expenditures.

Development Fund of Agriculture/Expenditures of the stabilisation of agriculture (Finland): Budgetary expenditures.Note: Development fund of agriculture has not been used after 1998, and Expenditures of the stabilisation has not been used since 2000.

Annual leave costs, outside help costs, day-off scheme (Finland): Budgetary expenditures.

Investment grants to support vine, hops and fruit production (Czech Republic): Payments per hectare covering part of the costs of planting new vineyards, hop gardens and orchards. Support to investments in irrigation facilities in orchards, vineyards, hops gardens.

Investment grants for transfers from arable to grassland (HRDP – agri-environmental payment) (Czech Republic): One off payment per hectare of arable land transformed into permanent grassland.

Land tax concession (Czech Republic):: tax concession granted on the land sold by the state under various privatisation projects of former state farms.

Investment related payments (Hungary) for financing new plantations of vineyards and orchards soil amelioration and establishing irrigation systems.

Assistance to the protection of arable land (Hungary): payments to farmers to reduce the costs of land improvement and purchase of land.

Animal welfare (Hungary): Payments to support pig and poultry farmers meet EU animal health and welfare requirements.

Investments in Agriculture under the AVOP programme (Hungary): Assistance to the investment in livestock production; Assistance to the investment in crop production; Assistance to the investments of new machinery; Assistance to the establishments of new vineyards, orchards; Assistance to the investments in melioration; Assistance to the investments in irrigation .

Partial support for interest of loan (Latvia): budgetary expenditures.

Support for repair of protecting dike, drainage due to the storm damage (Latvia from 2005): budgetary expenditure.

Breeding programme (Lithuania): budgetary expenditures.

Investment in land improvement (Slovenia): budgetary expenditures.

Capital grants for investments in permanent crops (Slovenia): budgetary expenditures on support for improvement and modernisation of fruit, hop and wine production.

Capital grants for irrigation programme (Slovenia): budgetary expenditures on financing of on-farm infrastructure.

Drainage payments (Poland): budget expenditure on land improvement through drainage. Calculated on a fiscal year.

Payments for water drainage system maintenance (Poland): budget expenditure on maintenance of drainage system. Calculated on a fiscal year basis.

Restoring permanent pastures (Slovenia from 2004): budgetary expenditures, per hectare payments to forage.

Restructuring vineyards, hop, fruit and olive plantations (Slovenia from 2004): Budgetary expenditures.

Special marketing policy programme for Maltese Agriculture (SMPPMA) (Malta from 2004): aid for restructuring for poultry, egg, fairy, pig and wine sector.

F. Payments based on input constraints

1. Based on constraints on variable inputs

Agri-environmental measures: Payments to farmers under EU agri-environmental measures to reduce the use of variable inputs such as fertilisers and pesticides. As agri-environmental data in the EU budget are not disaggregated, information from EU Members was used.

· National expenditures

Nitrate reduction (Greece): EU co-financed measure under Reg. 2978/92 to reduce the use of nitrate.

Pilot Beef and Sheep Extensification Scheme (UK): payments to farmers for reducing livestock stocking densities. The scheme was in operation between 1991/92 and 1996/97.

Agri-environmental measures (ÖPUL in Austria): see above.

National contribution to EU agri-environmental measures (Czech Rep. Estonia, Italy, Hungary, Lithuania, Poland, Slovak Rep., Slovenia): see above.

Payments for organic farming (Poland): Payments to farmers who refrain from using synthetic agro-chemicals. Calculated on a fiscal year basis.

Payments to organic (“ecological”- environmentally friendly) farming (HRDP) (Czech Republic): Payments per hectare of agricultural land (specific rates for arable land, grassland, perennial crops, vegetables and special herbs on arable land), where farmers operate without chemicals and fertilisers on voluntary basis (not imposed by environmental regulation).

Payments to organic farming (Slovak Republic): Payments per hectare of agricultural land where farmers operate without chemicals and fertilisers on voluntary basis (not imposed by environmental regulation).

2. Based on constraints on fixed inputs

Set-aside (Budget item B1-1062 in the  1998 EC Budget and Budget item B1-1061 in the 1998 EC Budget): payment per hectare of land set-aside under EC Reg. 2078/92 to cereal producers, based on their historical base acreage. The arable land set-aside for a minimum of 5 years or 20 years (long term set-aside) may either be used for non-food purposes, left fallow, with the possibility of rotation, afforested or used for non-agricultural purposes.

Premium for definitive abandonment or reduction of milk production (Budget item B1-2065 in the 1998 EC Budget): payment of ECU 120.8 per tonne of milk for five years, to buy-back quotas to producers who had made a non-marketing or conversion premium commitment (Reg. 1637/91). It applied to reference quantities with effect from the 1991/92 marketing year. EU financing was restricted to 3% of the guaranteed total quantities. The schemes ended in 1997.

Premium for definitive cessation of milk production (Budget item B1-2066 in the 1998 EC Budget): one or more annual payments to producers who undertake to abandon permanently at least half their milk reference quantity under Reg. 857/84 and Reg. 1336/86.

Premium for definitive cessation of milk production (Portugal) (Budget item B1-2068 in the 1998 EC Budget) ) and Other measures (Budget item B1-2069 in the 1998 EC Budget): under Reg. 739/93 and Reg. 740/93, Portuguese milk producers who undertook to abandon milk production totally and permanently before 1 September 1993 could receive an annual complementary compensation of ECU 17 per 100 Kg for three years. Cumulative financing of the programme was restricted to a total of 75 000 tonnes and ECU 38.5 million over the three years.

Programme for obligatory cattle slaughtering (Budget items B1-2127 in the 1998 EC Budget): budgetary expenditure on payments to producers for compulsory selective slaughtering of animals identified as more likely to have been exposed to meat and bone meal infected with BSE. The cost of this measure is 70% co-financed by the Community budget.

Early slaughter of calves (early marketing premium) premium (Budget items B1-2128 in the 1998 EC Budget): payment granted for the slaughter of calves (males and females) at a lighter than usual weight, during two years period as from 1 December 1996, in the context of BSE measures. The lighter weight is determined as the national average slaughter weight for the country concerned minus 15%.

Calf premiums (Budget items B1-2122 in the 1995 EC Budget): it refers to the calf marketing premium before its amendment in 1996 (Reg. 805/68).

Premiums for fattening young male calves (Budget items B1-2124 in the  1998 EC Budget): payments which provides a premium for the removal of calves from production before they reach 20 days of age under the calf processing scheme. The scheme was implemented for two years period as from 1 December 1996, in the context of BSE measures.

Exceptional support measures for cattle slaughtering (Budget items B1-2126 in the 1998 EC Budget): payment per head granted in the context of eradicating BSE for the slaughter and destruction of animals, in particular culled animals in the UK, Portugal and France. The member States concerned bear 30% of the costs and the remaining are financed by the Community budget.

Premiums for the slaughter of adult cattle other than cows (UK) (Budget items B1-2123 in the 1995 EC Budget). Budgetary expenditures.

Slaughter premiums for sheepmeat (UK) (Budget items B1-2221 in the 1995 EC Budget): payment per head of animal slaughtered to reduce the number of animals covered by the support system.

Exceptional market support measures for pork (Budget items B1-232 in the 1998 EC Budget): payment per head of animal slaughtered due to swine fever outbreak in 1997.

Measures to improve production for fruits and vegetables (Budget item B1-1505): payment per hectare for grubbing-up of apple, pear, peach and nectarine trees. There is a limit of 10 000 hectares of apple and pear trees and 10 000 hectares of peach and nectarine trees and the average aid is ECU 4600 per hectare.

Permanent abandonment premiums in respect of areas under vine (Budget item B1-164 in the 2001 EC Budget): payment per hectare to reduce vine-growing area potential (Reg. 1442/88). The payment varies, according to yield, type of cultivation and variety from euro 1450 to euro 12300 per hectare.

Abandonment of vine-growing; Vineyard restructuring; and Reconversion premium (EAGGF Guidance Fund, Reg. 456/80 and Reg. 458/80): Budgetary expenditures.

Afforestation (Budget item B1-5012 in the 1998 EC Budget): payments per hectare to encourage the alternative use of agricultural land for forestry or activities related to forestry in farm holdings (Reg. 2080/92 and RDR). Annual payment per hectare afforested to cover maintenance cost for a period of up to five years; and annual payment per hectare to cover losses of income resulting from afforestation for a maximum period of 20 years for farmers or their associations who worked the land before its afforestation or for any other private law person. There are maximum amounts per year of they annual premium to cover losses of income eligible for support.

Extensification (EAGGF Guidance Fund, Reg. 2328/91, Art. 3): payment per livestock unit removed for achieving extensification.

Extensification of livestock production: payments under agri-environmental measures to sheep and cattle producers per livestock unit reduced.

· National expenditures

Natural disaster (Belgium): Payments to compensate farmers for damage due to natural disaster, including damage to pasture due to the 1996 drought in 1999. From 2003, payment to compensate farmers for damage due to the rain in 2000 and 2001.

Animal disease (Belgium): Payments for the slaughter of disease animals in 1986-88.

Output reduction (Belgium): Payment given for the period 1992-95. Aid for investment in animal welfare (Denmark): payments to farmers to help their investments to improve their conditions of animal welfare (EU Reg. 950/97).

Environmentally friendly farming (Denmark): payments to farmers to encourage environmentally friendly extensive farming to minimise the risk of ground water pollution (EU Reg. 2078/92

Control of animal diseases (Denmark): Compensation payments for animals etc. destroyed as part of the control programmes for animal diseases.

BSE-related expenditure; early marketing beef and veal premia; restructuring of pig farming (Austria).

Capital Grant Scheme for Animal Carcase Disposal (Ireland): Funding is available through the NDP 2000-2006 for investments in appropriate facilities for the handling and disposal of fallen animals with an emphasis on establishing a comprehensive animal collection service in areas of the country not already adequately served.

Extensification (Austria): Budgetary expenditures.

Pasture payments (Austria): Budgetary expenditures.

Lowering production (Netherlands): Budgetary expenditures.

Diversion payments to milk producers (France, Spain, UK): National expenditures on payments per tonne of milk to producers to buy-back quotas.

Orchard grubbing scheme (France, UK): National expenditures on payments per hectare to producers for the withdrawal of orchard trees from production.

Set-aside (Austria, Belgium, France, Germany, Greece, Italy, Slovenia, UK): payments to producers for the withdrawal of arable land from production. (see above).

Measures for the sheep sector (Spain): 75% EU co-financing.

Output reduction (Belgium): Payment given for the period 1992-95.

Animal disease (Belgium): Payments for the slaughter of disease animals in 1986-88.

Farm Diversification Scheme (UK): budgetary expenditures to assist producers in converting fixed farm resources to diversified uses.

BSE-related expenditure on animal culls and feed recall (UK): payments to farmers under the BSE offspring and selective culls, the Over Thirty Months Scheme, Scrapie Compensation Scheme and MBM Feed Recall Scheme.

Woodland Grant Scheme and Farm Woodland Premium Scheme (UK): payments per hectare to encourage farmers to convert productive agricultural land to woodlands. It is part of the approved UK programme under EC Regulation 2080/92 on forestry measures in agriculture.

Afforestation (Czech Republic from 2005, Estonia from 2004, Finland, Greece, Hungary from 2005, Ireland, Italy, Latvia from 2005, Lithuania from 2005, Luxembourg, Netherlands, Poland from 2005, Portugal, Spain): per hectare payments under the EC Reg. 2078/92 and RDR measures to encourage cultivation of farm land into forestry. See above.

Abandonment premium (Finland until 2003): Budgetary expenditures.

Conversion of agricultural land to wetlands and ponds (Sweden): To reduce nitrogen leaching. Payments per hectare of area converted.

Repayment of Conversion grants (Sweden): Repayments of the adjustment programme.

Abandonment of olive trees (Portugal): EU co-financed measure.

Abandonment of vine-growing (Austria, France, Germany, Greece, Portugal, Spain): EU co-financed measure.

Diversion of resources from agriculture, 1998-99 (Germany): Federal and regional payments for diverting resources from agriculture to other uses. Calculated on a fiscal year basis.

Emergency programme swine fever (Germany): payments to farmers affected by swine fever. The programme was in operation during 1995.

Nature preservation (Germany): payments for environmentally friendly farming practices. The programme was in operation until 1986.

Extentification (Germany): payments for low-input farming. The programme has been in operation since 1991.

Calf-birth premium (Italy, until 1999): budgetary expenditures.

Disaster payments for animal diseases (Czech Republic): Payment per head of slaughtered animal compensating preventive slaughtering to limit contagious animal diseases.

Slaughter beef premium (Latvia, Lithuania): Payment per head, budgetary expenditures.

3. Based on constraints on a set of inputs

Land management: payments to producers under agri-environmental measures (EC Reg. 2078/92) for public access and leisure activities and upkeep of abandoned land.

· National expenditures

Agri-environmental measures according to regulation 2078/92 (Austria). Budgetary expenditures.

Pilot and demonstration projects (Denmark): Payments to demonstrate agri-environmental farming in order to extend knowledge of agri-environment.

Agri-environmental measures (Netherlands, Spain, Luxembourg, Poland, Portugal): EU co-financed programme.

Environmental aid (Finland): support to compensate producers for the increase in the production costs and income losses due to the restrictions imposed by the terms of the support. 80 % of environmental aid; the remaining 20 % allocated to set-aside (F2).

Agri-environmental programmes (Germany): Regional expenditures. Data available from 1997. No specific information. Calculated on a fiscal year basis.

Biomass promotion (Austria): Budgetary expenditures.

Organic agriculture plan (France): National expenditures on payments to producers for conversion to organic farming.

Territorial management contract (CTE) funds (France): Government payments to a funds financing CTEs.

Village renewal (Germany): payments for the upgrading of farm houses and facilities. Calculated on a fiscal year basis.

Farming villages (Germany): payments for the upgrading of rural villages. The programme was introduced in 1988.

Organic farming and genetic diversity (Belgium): From 1996, area payments for organic farming granted under EU Reg. 2078/92 and RDR. In addition, from 1999, per head payments to support genetic diversity are also granted under EU Reg. 2078/92.

Organic farming (Denmark): Payments to help farmers to convert their conventional farming to organic one and to improve the conditions of their organic farming (EU Reg. 2078/92 and RDR).

Environmental aid (Finland): Support to compensate producers for the increase in the production costs and income losses due to the restrictions imposed by the terms of the support. From 2000 environmental support consists of basic measures, additional measures and special measures. The basic measures and additional measures replace the earlier aid based on the GAEPS, and it is paid on the basis of the arable area to farmers who commit themselves to measures that reduce contamination to the environment. 100 % of environmental aid.

Environmentally Sensitive Areas (United Kingdom): payments per hectare of land entered into the scheme to farmers to adopt agricultural practices which will safeguard and enhance the rural environment and create improvements in public access to areas of particularly high landscape, wildlife or historic value which are threatened by changes in farming practices. Payment rates in each Environmentally Sensitive Area (ESA) vary according to local economic conditions.

Habitat Scheme (United Kingdom): payments per hectare for helping farmers to create or enhance certain valuable habitats over 10 or 20 years by taking land out of agricultural production, or introducing extensive grazing, and managing it for the benefit of wildlife. The scheme is targeted on land coming out of the former voluntary 5-year set-aside scheme, land suitable for conversion to saltmarsh, and land alongside watercourses and lakes in six pilot areas.

Moorland Scheme (United Kingdom): annual payment to farmers for the number of ewes removed from the flock to meet maximum winter and summer stocking density limits in order to protect and improve the upland moorland environment. Farmers may also be eligible for per hectare payment in respect of bracken control and the erection of temporary fencing.

Countryside Stewarship Scheme (United Kingdom): payments to farmers and other land managers to enhance and conserve landscapes, their wildlife and history and to help people to enjoy them. Under agreements of usually 10 years, payment is specific to the particular work carried out under detailed specifications.

Countryside Access Scheme (United Kingdom): payments to farmers per kilometre for access routes and per hectare for open field sites to encourage farmers to provide public access to suitable set-aside land for walking and quite recreation.

Countryside Management (Northern Ireland): agri-environment scheme operating in Northern Ireland whereby farmers receive direct payments for managing their land in such a way as to benefit the environment.

Sites/Areas of Special Scientific Interest (United Kingdom): there are over 4,000 Sites/Areas of Special Scientific Interest (SSSIs). Agreement may be reached with farmers in these areas to manage the land in certain ways to preserve their conservation interest for which farmers receive direct payment. These agreements are nationally funded payments rather than being funded through the Common Agricultural Policy and we include them in our economic account for agriculture.

Organic farming (United Kingdom): per hectare payments to farmers over five years on land being converted to organic production. The payment rate varies between LFAs and non-LFAs and is decreasing over time. Any agricultural land not already in organic production is eligible to enter the scheme. Existing organic farmers may also benefit when converting new land. The scheme is voluntary and there is a limit of minimum 1 hectare up to a maximum of 300 hectares per holding.

Cymen Scheme (United Kingdom): implemented as the Country Stewarship Scheme above.

Rural Environmental Protection Scheme (Ireland): annual payment per hectare to holdings of less than 40 hectares, to help farmers to improve farming practices. Supplementary payments are made for rare breeds, long-term set-aside and organic farming.

Open landscape (Sweden): see E1. 75% allocated to this category and 25% to E1.

Natural and cultural environment (Sweden): Paid for specific landscape features, such as trees in alleys, maintenance of stone hedges, removing bushes. Points are given to the features, the points are then converted into area payments. These payments are mainly for the provision of public environmental goods, landscape and cultural features. The support is targeted and not directly linked to production.

Restoration of mowed meadows (Sweden): Meadows valuable for biodiversity, meadows cut by hand, not really used for production.

Payments under the Agricultural Environmental Programme (Hungary, from 2002). Budgetary expenditures. Replaced from 2005 with the Agricultural Environment Protection Programme (see below).

Agricultural Environment Protection Programme (Hungary from 2005): Payments provided within programmes of the National Rural Development Plan (NRDP).

Payments for wetland (HRDP – agri-environmental measures) (Czech Republic): Payments per hectare of wetlands supporting their restoration and maintenance. [1]

Payments for bird habitats on grassland (HRDP – agri-environmental measures) (Czech Republic): Payments per hectare of grassland with bird habitats for specific bird species. [1]

Payments for creation of bio belts and protective zones (HRDP – agri-environmental measures) (Czech Republic): Payments per hectare of “bio belts” (strips of agricultural land seeded with a mix of 4 feed crops for wild animals) and protective zones. [1]

Organic farming (Estonia from 2004, Latvia from 2004, Lithuania from 2004, Malta from 2004): payments per hectare to organic farming. EU co-financed programme. Preservation of biodiversity (Latvia from 2004): payment per hectare for preservation of biodiversity. EU co-financed programme.

Agri-environmental payments (Slovak Republic from 2005, HRDP): Payments granted under the agri-environmental programmes of the HRDP.

Preservation of nature, biodiversity, soil fertility and traditional cultural landscape (Slovenia from 2004): per hectare payments to forage.

Maintenance of protected areas (Slovenia from 2004): per hectare payment for wheat, maize, barley, oats, sugarbeet, milk, cattle sheep and other.

Investment support for economic diversification on farms (Slovenia from 2004): National, SAPARD and SPD funds.

G. Payments based on overall farming income

1. Based on farm income level

· National expenditures

Disaster payments, direct income support (Netherlands): Decoupled income support and income insurance and income safety-net programs.

Biological funds/assistance for genetical development (Hungary): Payments to farms to reduce the costs of preserving and developing biological funds, establishment of plantations of gene-preservations.

Support to semi-subsistence farms (Hungary from 2005): flat rate payment per farm presenting a business project. budgetary expenditures.

Natural disaster payments (Slovenia): budgetary expenditures on payments to producers to compensate losses due to natural disasters.

Payments to farms and co-operatives experiencing serious financial constraints (Slovenia): budgetary expenditures.

Compensation for plant health measures (Slovenia): budgetary expenditures on payments for vegetables and horticultural products, fresh fruits, other industrial crops.

Compensation for emergency veterinary measures (Slovenia): budgetary expenditures.

Compensation for crop damage caused by protected wild animals (Slovenia from 2004): Budgetary expenditures.

Farmers with income problems (Slovenia from 2004): budgetary expenditures.

2. Based on established minimum income: none

H. Miscellaneous payments

Income aid (Budget item B1-140 in the 1998 EC Budget): payment for providing degressive income support over a period of five years to producers whose net farm income during a fixed period fell below a threshold fixed in relation to the relevant national average due to CAP reform initiatives (Reg. 3813/89). In force for the 1989-93 period, the payment was limited to a maximum of ECU 2500 per year and per labour employed. Financed jointly by the EC and the relevant national government, only France and the Netherlands made use of this scheme.

Clearance of previous year’s accounts and reductions/suspensions of advances (Budget item B1-370 in the 2001 EC Budget): This item covers the application of Article 102 of the EU Financial Regulation of 21 December 1977 under which expenditures are charged to the financial year during which the accounts are cleared. The clearance of accounts by the European Commission is mainly in the form of reduction of payments from the FEOGA Guarantee Fund to Member countries in the event of non-compliance with the EU regulations (EC Reg. 1258/99; EC Reg. 729/94). The clearance of accounts is taken before the end of April of the following year.

1. National (EU)

Irregularities: budgetary expenditures to recover amounts in cases of irregularity or fraud, including Cereals-Other (Item B1-109 in the 1998 EC Budget; Sugar-Other (Item B1-119 in the 1998 EC Budget; Beef-Other intervention (Budget items B1-2129 in the 1998 EC Budget) and Other (Item B1-219 in the 1998 EC Budget; Pigmeat-Other (Item B1-29 in the 1998 EC Budget; Poultry and eggs-Other (Item B1-249 in the 1998 EC Budget; Sheepmeat and goat meat-Other (Item B1-229 in the 1998 EC Budget; Fruits and vegetables-Other intervention (Budget items B1-1519 in the 1998 EC Budget); Tobacco-Other intervention (Budget item B1-179 in the 1998 EC Budget); Wine-Others (Budget item B1-169 in the 1998 EC Budget); Other animal product aid measures (Budget item B1-25 in the 1996 EC Budget); Others (Budget item B1-259 in the 1996 EC Budget); Food aid-Other (Budget item B1-319 in the 1998 EC Budget); Other (Items B1-399, B1-34 and B1-36 in the 1998 EC Budget).

2. Sub-national payments

· National expenditures

Budgetary expenditures from members States (e.g. Ireland, Italy, Spain).

Expenditures of the stabilisation of agricultural production (Finland).

Payments to commodity boards (France): 7% of government expenditures to commodity boards.

Tax rebates (France) : Tax concessions in 1986 plus 50% of the value of tax rebates to farmers relative to the standard rate.

National development plan / Agricultural Development (75%) (Ireland): Amount represents total spending under this initiative for years 2000 and 2001.

Expenditures of the stabilisation of agricultural production (Finland until 2000).

Support to semi-subsistence farms undergoing restructuring (Estonia, Latvia from 2005, Lithuania from 2005): flat rate payment per farm presenting a business project. Budgetary expenditures on support to semi-subsistence farmers with rural transition problems (RDR).

Compensation for frost-bitten crops (Latvia): budgetary expenditures.

Other support from the state level (Lithuania): budgetary expenditures.

Expenditure of state and municipal governments (Poland): Budgetary support of farming by state and municipal governments (half, other half under GSSE).

Expenditure of territorial, self-governing associations of agricultural producers (Poland): Budgetary support of farming by state sanctioned associations of agricultural producers (half, other half under GSSE).

III.2 Percentage PSE [(III.1) / ((I) + (Sum of B to H)) x 100]

III.3 Producer NAC [1 / (100 - (III.2)) x 100]

IV. General Services Support Estimate (GSSE): total budgetary expenditure to support general services provided to agriculture Sum of I to O.

I. Research and development

Community fund for research and information (Budget item B1-175 in the 1998 EC Budget): budgetary expenditures to finance research and information in the tobacco sector.

Office communautaire des variétés végétales (Budget item B2-5103 in the 1998 EC Budget): expenditures to develop new vegetable varieties.

Farm Accountancy Network (Budget item B2-512 in the 1998 EC Budget) and Restructuring of agricultural survey (Budget item B2-513 in the 1998 EC Budget): expenditures on the improvement of agricultural statistic systems in the Community.

Plant and animal genetic resources (Budget item B2-517 in the 1998 EC Budget): expenditures to cover the management of genetic resources by the public and private sectors.

Farm accounts (Reg. 2328/91, Art. 13): expenditures on the improvement of agricultural statistic systems in the Community.

· National expenditures

Research and development: expenditures from member States.

Accounting aid (Germany): assistance for farm accounting. The programme was in operation until 1987.

J. Agricultural schools

Training and information (Budget item B2-514 in the 1998 EC Budget): expenditures to cover some of the operating costs and operational expenses (seminars, dissemination of information, etc.) incurred in connection with the training and information activities.

Vocational training (Reg. 72/161 and Reg. 2328/91, Art. 28): provision of socio-economic guidance for and the acquisition of occupational skills by persons engaged in agriculture.

Community Initiatives (LEADER, REGIS, INTEREG, PEACE): Measures to promote new strategies for sustainable development in rural areas by spreading innovative methods for improving the quality and competitiveness of goods and services; adding value to local products, especially those produced with low environmental impact; improving quality of life for rural people; helping to create jobs, especially for women and young people; and developing and protecting natural and cultural heritage.

· National expenditures

Agricultural schools: expenditures from member States.

K. Inspection services

Office for veterinary and Plant Health Inspection and Control (Budget items B2-5104 in the 1998 EC Budget): expenditures to cover Office expenses for veterinary and plant health inspections as laid down in the various Community rules.

Inspection in agriculture (Budget item B2-511 in the 1988 EC Budget): expenditures to cover inspection expenses as laid down in the various Community rules.

· National expenditures

Inspection: expenditures from members States.

L. Infrastructure

Production aid for raspberries processing (Budget items B1-1516 in the 1998 EC Budget): payments to producers’ organisations which have submitted a programme to improve the structure of the raspberries processing sector (Reg. 1991/92), 40% of which is financed by the EU.

Early retirement (Budget item B1-5010 in the 1998 EC Budget): payments to farmers who stop all commercial farming activity definitely, are no less than 55 years old and have practiced farming for ten years (Reg. 2079/92). Granted during a maximum of ten years, the payment stops at the normal retirement age of the beneficiary or at his 70th birthday.

Agri-monetary aid (Budget item B1-390 in the 1998 EC Budget): see category B.1. As disaggregated data are not available, information from EU Members was used to allocate the payments to different categories: 10% are allocated to this category, 45% are allocated to B.1, 35% to E.1 and 10% to M.

Early retirement: (Reg. 1096/88): see above

Cessation of farming (Reg. 160/72, 1096/88 and 2079/92): payments to encourage cessation of farming.

Investment aids to improve off-farm infrastructure or help agricultural development in certain regions

Investment (Reg. 797/85, Art. 4) and Joint investment scheme (Reg. 797/85, Art. 7).

Infrastructure (Reg. 1760/78).

General programme (Germany) (Reg. 1938/61).

Integrated Development Programme in Lozère (Reg. 1940/81).

Less favoured areas in Belgium (Reg. 1941/81).

Less favoured areas in Germany (Reg. 1941/81).

Less favoured areas of Northern Italy (Reg 1401/86).

Less favoured areas in W. Isles of Scotland (Reg. 1402/86).

Development programmes in Greece and Portugal (Reg. 1975/82, Reg. 3828/85).

Agricultural development in Spain (Reg. 1118/88).

Less favoured areas in West of Ireland (Reg. 1820/80).

Integrated Mediterranean Programme (IMP) (Reg. 2088/85); IMP infrastructure and IMP forestry (Reg. 1760/78, Reg. 269/79).

Community initiatives (LEADER, REGIS, INTEREG programmes).

· National expenditures

Early retirement (Belgium, Denmark, France, Greece, Germany, Ireland, Italy, Lithuania, Luxembourg, Netherlands, Portugal, Spain, Slovenia): see above.

Development of specific rural areas (Austria, France, Greece, Denmark, Germany, Italy): Payments to improve methods of production, develop new products, rural and forest roads, etc in specific rural areas (EU Reg. 950/97).

Permanent withdrawal of agricultural resources (Belgium, from 2004): payments for the withdrawal of inputs.

Rural development (Belgium): 80% of total payments for land consolidation and rural roads, the other 20% being allocated to E. Payments based on input use

Cattle breeding infrastructure (Ireland): support for the establishment of a National Cattle Organisation and the integration and co-ordination of the various cattle breeding activities.

Development of Organic Farming (Ireland): payments to farmers, groups, companies or co-operatives for the provision of facilities for grading, packing, storage and distribution of organic produce. Payments are paid to operators (producers, companies, co-operatives) who meet the requirements under Reg. (EU) No. 2092/91. Levels of support are 30% capital grants and 70% grants for marketing and promotion. Thus, only 30% are allocated in this category.

Housing/Handling Facilities for Alternative Enterprises (Ireland): capital grants to encourage farmers and rural dwellers to develop alternative enterprises to traditional farming. The rate of subsidy is higher in LFAs and there are investment ceilings according to the sector.

Development of the Horse Industry (Ireland): budgetary expenditures to encourage the breeding, production, marketing and promotion of quality sport horses.

Development of the Greyhound Industry (Ireland): payments to encourage the improvement in the quality and range of greyhound breeding, and to assist in the marketing and promotion of track greyhounds produced.

Services in rural areas (Ireland): budgetary payments for Development Officers to generate new job opportunities through expansion of the provision of agricultural services, e.g. farm relief services and support through capital grants for investment in infrastructure at local individual member level.

Insfrastructure improvements (Austria): Budgetary payments to water and land improvement projects.

Infrastructure improvement (Portugal): co-financed programmes in favour of new collective irrigation systems, large irrigation systems, dams, roads, electrification, rural centres, and rural development (LEADER), early retirement plus national programmes on development of water distribution and other programmes for improving infrastructures.

Irrigation, drainage (Czech Republic, Slovak Republic): Budget expenditure on the operation and maintenance of public drainage and irrigation equipment financed by the Land Fund, Ministry of Agriculture, State Fund for Environment.

Land (Czech Republic, Slovak Republic): Budget expenditure financing Land Offices activities in setting and updating agricultural land registration (database) in rural cadastres.

Rural Infrastructure (Czech Republic, Slovak Republic): Budget expenditures financing the renewal of rural infrastructure in flooded areas.

Land improvement operations (Estonia, Slovenia): budgetary expenditures.

Investment to rural diversification (Estonia): investment aid from SAPARD and National Development Plan funds to improve off-farm infrastructure or help agricultural development in certain regions.

EU Special Accession Programme for Agriculture and Rural Development (SAPARD) (Hungary): Development, infrastructure and technical assistance expenditures.)

Land Conservation Fund (Hungary): expenditures financing the Land Offices activities in setting and updating agricultural land registration (database) in rural cadastres, and budget expenditures for construction of field roads. 50% in this category and 50% in E3.

Agricultural informatics (Hungary): expenditures financing projects dealing with computers and data collecting as well as consulting activities in the field of microcomputers for farmers.

Service of field wardens (Hungary): financing the operation of services provided by local governments, assistance to establish facilities of inland waterways.

Development and adjustment of rural areas (Latvia, Lithuania): investment aid from SAPARD funds to improve off-farm infrastructure or help agricultural development in certain regions.

Structures, infrastructures (Lithuania): budgetary expenditures.

Meeting claims of farmers whose production was sold to bankrupted enterprises (Lithuania): budgetary expenditures.

Rural development programmes (Slovenia): budgetary expenditures on Development projects for rural economies, rural infrastructure, tourist wine routes, diversification of activities. Investment aid from SAPARD funds (from 2002) to improve off-farm infrastructure or help agricultural development in certain regions.

Payments for infrastructure improvement (Poland): Budgetary expenditure to "water societies", for rural infrastructure (SAPARD in 2002 and 2003, 25% of expenditures), on amelioration, for the development of agri-business firms.

Support for bringing manure handling into compliance with environmental standards (Estonia from 2005): Budgetary expenditures on investment support to livestock producers to comply with the environmental requirements (for protection of waters against pollution).

Collection, transportation, storing, processing and liquidation of by-products of animal origin (Latvia, 2004): budgetary expenditures.

Meeting standards (Lithuania from 2005): to take the production into compliance with the environmental requirements (for protection of waters against pollution).

Development projects for rural economies (Slovenia from 2004): budgetary expenditures.

Technical assistance (Slovenia from 2004): budgetary expenditures.

Upgrading of rural villages (Slovenia from 2004): budgetary expenditures.

Diversification of activities in rural areas (Slovenia from 2004): budgetary expenditures.

Infrastructure improvement of rural areas (Slovenia from 2004): budgetary expenditures.

Drainage and irrigation systems (Slovenia from 2004): budgetary expenditures.

Breeding control service, livestock public services and horse breeding centre Lipica (Slovenia 2004): budgetary expenditures on infrastructure support to these centres. [?]

Defence against hail (Slovenia 2004): budgetary expenditures.

Assistance to farmers for the construction of farm roads (2004): budgetary expenditures.

Slaughterhouse waste (Malta from 2004): budgetary expenditures.

Rural stewardship scheme (Malta from 2004): budgetary expenditures.

Restoration of terrace retaining rubble walls (Malta from 2004): RDR agri-environment programme, budgetary expenditures.

Meeting standards (Malta, from 2004): budgetary expenditures (RDR measure).

M. Marketing and promotion

Export refunds: the positive difference between the refunds and the corresponding market price support for the commodity concerned plus:

Refunds on cereals exported in the form of certain spirituous beverages (Budget item B1-300 in the 1998 EC Budget).

Refunds on certain goods obtained by processing agricultural products (Budget item B1-301 in the 1998 EC Budget).

Refunds in connection with Community food aid (Budget item B1-311 in the 1998 EC Budget).

Refunds for olive oil (Budget item B1-120 in the 1998 EC Budget), tobacco (Budget item B1-170 in the 1998 EC Budget).

Refunds on fruits and vegetables (Budget items B1-150 and B1-1510 in the 1998 EC Budget).

Refunds on wine (Budget item B1-160 in the 1998 EC Budget).

Subsidies for rice deliveries to Reunion (Budget item B1-1856 in the 1998 EC Budget: to facilitate deliveries of rice to the French overseas department of Reunion.

POSEIMA (Reg. 91/315): payments for processing sugar beet in Açores (Budget item B1-1831 in the 1998 EC Budget).

Specific measures (Budget items B1-1401 in the 1996 EC Budget): budgetary expenditures on information to promote the use of fibre flax (Reg. 1308/70).

Marketing and promotion of dairy products: budgetary expenditures on Market development (B1-2062 budget item in the 1995 EC Budget); Improvement of milk quality (B1-2063 budget item in the 1995 EC Budget); Other measures under the programme to expand the market for milk products (B1-2064 budget item in the 1995 EC Budget); and Measures to assist small farmers (B1-208 budget item in the 1995 EC Budget).

Promotion and marketing measures for beef (Budget items B1-2126 in the 1998 EC Budget).

Production aid for processing agrumes (leg. secs) (Budget items B1-1515 in the 1998 EC Budget): budgetary expenditures to producer organisations for processing of certain citrus fruits (Reg. 3119/93) to encourage the disposal of certain varieties and products ill adapted to the market for fresh products to ensure they are processed into juice or segments under economically satisfactory conditions.

Specific measures (Citrus register) (Budget items B1-1504 in the 1998 EC Budget): payment of ECU 15 per 100 Kg provided for hazelnuts harvested during 1997/98, 1998/99 and 1999/2000 marketing years by producer organisations which implemented a quality improvement plan (Reg. 1035/96) or an operational programme (Reg. 2200/96) in 1997.

Marketing and promotion of fruits and vegetables (Budget items B1-1506 in the 1998 EC Budget).

Nuts (Budget items B1-1507 in the 1998 EC Budget): payments to producer organisations for financing quality and marketing improvement plans (Reg. 2200/96).

Other intervention (Budget items B1-1509 in the 1998 EC Budget): expenditures relating to special measures for the transport of certain fresh fruit and vegetables originating in Greece (Reg. 3438/92) and for the restructuring of the fresh fruit and vegetable sector in France, Italy and Greece following termination of the transitional measures laid down by the Act of Accession of Spain and applicable until 31 December 1995 (Reg. 381/92). EU co-finances 75% of the expenditures borne by the country concerned, for a period of three years and subject to an overall limit of ECU 100 million.

Aid for the use of must (Budget item B1-163 in the 1998 EC Budget): payments to must producers to improve the competitiveness of must produced in the EU. Part of it is used for the organisation of promotional campaigns for grape juice.

Control agencies (Budget item B1-174 in the 1997 EC Budget): budgetary expenditures to tobacco control agencies to improve marketing and promotion.

Quality promotion measures (Budget item B1-38 in the 1998 EC Budget): payments to processors for improving quality of certain agricultural products (dairy, beef, fruits and vegetables, olives, etc.).

Measures to apiculture (Budget item B1-254 in the 1996 EC Budget): payments on support to bee-keeping sector, primarily through improving consumer information as well as quality control.

POSEIDON (Reg. 89/687): payments to producer groups for marketing cereals, fruits and vegetables and livestock in certain remote areas (Budget items B1-1830 et B1-2510 in the 1998 EC Budget).

POSEIMA (Reg. 91/315): payments to producer groups for marketing fruits and vegetables in certain remote areas (Budget item B1-1831 in the 1998 EC Budget).

POSEICAN (Reg. 91/314): payments to mutual aid groups for marketing fruits and vegetables (Budget item B1-1832 in the 1998 EC Budget).

Agri-monetary aid (Budget item B1-390 in the 1998 EC Budget): see category B.1. As disaggregated data are not available, information from EU Members was used to allocate the payments to different categories: 10% are allocated to this category, 45% are allocated to B.1, 35% to E.1 and 10% to L.

Accession compensatory amounts granted in intra-community trade (Budget item B1-31 in the 1994 Budget); Monetary compensatory amounts levied or paid in trade in agricultural products (Budget item B1-32 in the 1994 Budget). Both measures, which were in force between 1986 and 1994, refer to monetary compensatory amounts of the agri-monetary system, whereby institutional prices are set in terms of ECUs and converted to national currencies at special conversion rates known as "green rates".

Processing and marketing (Reg. 355/77; Reg. 866/90 and 867/90): budgetary expenditures on measures to increase competitiveness of the sector as a whole through improving processing and marketing industries.

Producer groups (Reg. 1035/72; Reg. 1360/78) and Mutual aid groups (Reg. 2328/91, Art. 14 and 16): budgetary expenditures to assist the formation of producer groups for marketing and promotion.

Citrus fruit (Reg. 2511/69): budgetary expenditure on measures for improving marketing of citrus fruit.

Cotton (Reg. 389/82): budgetary expenditures for covering some operational costs of producer groups and associations in the cotton sector.

Vines programme in South of France.

Sheep programme in Groënland.

· National expenditures

Promotion of organic products (Austria): budgetary expenditures to promote organic products.

Fruits and vegetables (Greece): budgetary expenditures to improve production and commercialisation.

Marketing and processing: expenditures from member States (EU Reg. 866/90, 867/90).

Domestic food aid (France): budgetary expenditures.

Marketing and promotion (France): part of budgetary transfers to CNASEA and Commodity Boards.

Olive oil (Italy): budgetary expenditures to improve olive oil quality.

Olive Oil Agency (Spain): budgetary expenditures on payments and capital grant to this agency.

Spanish Fund of Agricultural Guarantee (Spain): budgetary expenditures on payments and capital grant to this agency that implements most of CAP payments.

Producer Groups (Austria, Greece, Ireland, Spain): budgetary expenditures on measures covering the cost of formation and some operating costs of producer groups in certain sectors to promote and market their produce.

Development of Organic Farming (Ireland): only 70% of the expenditures are allocated in this category. See category L.

Agri-tourism (Ireland): half of these payments are included in this category and the other half under category F3.

Information, Promotion, Consumer Help (Germany): budgetary expenditures on consumer information.

Improvement in marketing structures (Germany): budgetary expenditures on measures to improve marketing structures.

Marketing and promotion (Portugal): co-financed programmes for processing and marketing of agricultural products, including traditional regional products.

Marketing and promotion (Estonia): budgetary expenditures to support marketing, support to foundation or daily operations of producer's co-operatives, market information systems, participation in international fairs and exhibitions and other forms of promotion. From 2002 investment support for processing enterprises from SAPARD funds.

Marketing and promotion (Hungary): Budget expenditure to support marketing producer's co-operatives and participation on international fairs and exhibitions and other forms of promotion.

Other marketing and promotion programmes (Latvia): budgetary expenditures.

Support to non-governmental organizations and producers (Latvia): budgetary expenditures.

Support for organic agriculture (Latvia): budgetary expenditures.

Investment to processing and marketing (Latvia, Lithuania): investment support from SAPARD funds.

Agricultural inputs and development of quality assessment system (Lithuania): budgetary expenditures.

Implementation of the storehouse system (Lithuania): budgetary expenditures.

Creation of the market information system (Lithuania): budgetary expenditures.

Support to farmers associations (Lithuania, Spain): budgetary expenditures.

Financing the farmer’s representation in the EU (Lithuania): budgetary expenditures.

Support for bio fuel production (Lithuania): budgetary expenditures.

Investment aid to food processors (Slovenia): budgetary expenditures. From 2002 support from SAPARD funds for investment in processing and marketing of agricultural products.

Transfers to co-operatives (Slovenia): budgetary expenditures on subsidies to improve marketing through co-operatives, investment aid, etc.

Transfers to producer organisations and associations (Slovenia): budgetary expenditures.

Other expenditures for marketing and promotion of agro-food products (Slovenia): budgetary expenditures.

Improving processing and marketing (Estonia from 2002): investment support for processing enterprises from SAPARD and NDP funds.

Market development support (Estonia from 2005): for non-profit organizations to cover costs of activities that increase marketing possibilities of (processed) agricultural products or introduce R&D achievements in agricultural production or processing or of activities, which result in improved agricultural production or processing.

Apiculture programme (Estonia from 2005): support for apiculture.

Support for private storage (Lithuania from 2003): budgetary expenditures.

Special marketing policy programme for Maltese Agriculture (SMPPMA) (Malta from 2004): aid for processing sector in wine and tomatoes sector, budgetary expenditures.

Contribution towards marketing expenses to agricultural co-operatives (Malta from 2004): budgetary expenditures.

Producers groups (Malta from 2004): RDR measure, budgetary expenditures.

Improving processing and marketing of agricultural products (Malta from 2004): budgetary expenditures, guidance.

N. Public stockholding

Intervention storage of cereals: budgetary expenditures on carryover payments, technical, financial and other public storage costs, including depreciation of stocks for, oilseeds, rice, sugar, butter and cream, skimmed milk powder, beef, pigmeat, sheep and goats, olive oil, wine and tobacco.

Repayments to member States (Budget item B1-81 in the 1990 EC Budget): budgetary expenditures to cover depreciation costs of stocks and costs of other specific measures on butter public stocks.

· National expenditures

Over Thirty Month Scheme and Selective Cull Scheme (UK): BSE-related stockholding costs since 1996/97 not reimbursed by EAGGF budget.

State security grain reserve (Estonia): budgetary expenditures for financing State security grain reserve.

Stockholding (Lithuania): budgetary expenditures.

O. Miscellaneous payments

1. National payments (EU)

International agreements (Budget item B2-516 in the 1998 EC Budget): expenditures to cover the Community’s contribution to international agreements (e.g. Food Aid Convention, Wheat Trade Convention, International Coffee Agreement, International Sugar agreement, etc.).

2. Sub-national payments

· National expenditures

Miscellaneous: expenditures from members States (Austria, Germany, Italy, Spain). A number of region-specific programmes on general services for which more information is needed on their implementation (Individual projects, Replacement services, Emergency measures and Transitional measures).

V.1 Consumer Support Estimate (CSE): associated with agricultural production, i.e. for the quantities of commodities domestically produced, excluding the quantities used on-farm as feed -- excess feed cost. (Sum of P to S, when negative, the amounts represent an implicit tax on consumers).

P. Transfers to producers from consumers: associated with market price support on all domestically produced commodities, estimated by increasing the transfers calculated for the common commodities according to their share in the total value of production [(P.1) / (I.1) x 100].

1. Of which MPScommodities: sum of the values of transfers from consumers to producers associated with market price support for the MPS commodities as calculated in Table 2.

Q. Other transfers from consumers: transfers to the budget associated with market price support on the quantities imported of domestically produced commodities, estimated by increasing the transfers calculated for the common commodities according to their share in the total value of production [(Q.1) / (I.1) x 100].

1. Of which MPScommodities: sum of the transfers to the budget associated with market price support on the quantities imported for the MPS commodities as calculated in Table 2.

R. Transfers to consumers from taxpayers

Cereals

Production refunds for cereal starch (Budget item B1-1022 in the 1998 EC Budget): payment to processors granted for starch obtained from maize and wheat, allocated between common wheat (20%) and maize (80%).

Compensatory payments and premiums for potato starch (Budget item B1-1021 in the 1998 EC Budget): payment to processors of potato starch on the quantity of potatoes they paid a minimum price.

Oilseeds

Production refunds for oilseeds (Budget item B1-125 in the 1990 EC Budget): payments to crushers on the quantities used from domestic production.

Rice

Production refunds for starch and brewing (Budget item B1-1855 in the 1998 EC Budget): payment for the production of starch and for the brewing industry on the quantities of rice used from domestic production.

Sugar

Refunds on sugar used in the chemical industry (Budget item B1-1112 in the 1998 EC Budget): payments for the production of certain chemical products net of isoglucose production levies and production levy for inulin (Budget items B11-112 and B11-115).

Measures to aid the disposal of raw sugar (Budget item B1-1113 in the 1998 EC Budget) and Other intervention for sugar (Budget item B1-1119 in the 1998 EC Budget): payments per tonne to processors for transporting sugar from the French Overseas Departments (DOM) to the EU and refining in EU refineries.

Production levies (Budget item B11-110, 111, 112, 113, 114, 115, 116 and 118 in the 1998 EC Budget): only the part paid by processors, that is, 40%, is included as negative in this category. The remaining 60% is paid by producers and is included as price levies in the market price support estimations.

Storage levies (Budget item B11-111 in the 1998 EC Budget): storage levies charged at the time of marketing by the manufacturer net of reimbursement expenditures (Budget item B1-1110 in the 1998 EC Budget).

Dairy

Milk feed: payments for liquid skimmed milk and SMP for use as animal feed, mainly calves (Reg. 986/68), allocated to milk production. It includes: aid for skimmed milk powder for use as feed for calves (Budget item B1-2020 in the 1998 EC Budget); aid for liquid skimmed milk for use as feed for calves (Budget item B1-2021 in the 1998 EC Budget); aid for skimmed milk powder for use as feed for animals other than calves (Budget item B1-2022 in the 1998 EC Budget); aid for powdered milk with 10% fat for use as feed for calves (Budget item B1-2025 in the 1996 EC Budget); and other aid (Budget item B1-2029 in the 1998 EC Budget).

Other measures relating to butterfat (Budget item B1-204 in the 1998 EC Budget) including Consumption aid for butter and for those receiving social assistance (Budget item B1-2040) and Other measures (Budget item B1-2041): budgetary expenditures to finance the disposal of butter surpluses through consumption aids to non profit making organisations and recipients of social assistance, and to the use of butter in production of pastry products, ice cream and other food products. (Reg. 2990/82, Reg. 37309/87).

School milk (Budget item B1-2061): budgetary expenditures to maintain and promote consumption of milk products by school children (Reg. 1842/83, Reg. 3392/93).

Aid for skimmed milk processed into casein (Budget item B1-2024 in the 1998 EC Budget): payments to processors fixed in such a way that the income derived from the sale of skim milk processed into casein and caseinates correspond to that derived from the sale of skim milk processed into SMP (Reg. 987/68 and Reg. 2921/90).

Consumption subsidies for dairy products in remote areas: POSEIDOM (Reg. 89/687) (Budget item B1-2510 in the 1998 EC Budget); POSEICAN (Reg. 91/314): consumption subsidies for dairy products (Budget item B1-2512 in the 1998 EC Budget); POSEIMA (Reg. 91/315): consumption subsidies for dairy products in Madère (Budget item B1-2511 in the 1998 EC Budget).

Olive oil

Consumption aid (Budget items B1-1220 in the 1998 EC Budget): payments to crushers, granted for olive oil put in containers of up to five litres when the production target price, minus production aid (see category B.2), exceeds the representative market price.

Schemes related to consumption (Budget items B1-1221 in the 1998 EC Budget): budgetary expenditures on schemes to promote olive consumption, including free distribution to poorest citizens.

Other intervention for olive oil (Budget items B1-124 in the 1998 EC Budget): Production refunds granted to facilitate the sale of olive oil to the canning industry.

Cotton

Payments per tonne to processors, who then pay back to producers a minimum price (Budget items B1-141 in the 1998 EC Budget).

Fruit and vegetables

Consumption aids on certain imports of fruits and vegetables to Açores and Madère: POSEIMA (Reg. 91/315) (Budget item B1-1831 in the 1998 EC Budget) and to certain remote areas; POSEICAN (Reg. 91/314) and Smaller Aegean islands (Reg. 2019/93) (Budget item B1-1832 and B1-1833 in the 1998 EC Budget)].

Compensation for withdrawal and buying in and for free distribution operations (Budget items B1-1501 in the 1998 EC Budget);

Compensation to promote Community citrus fruit (Budget items B1-1502 in the 1998 EC Budget); and Compensation to encourage processing of citrus fruit (Budget items B1-1503 in the 1998 EC Budget);

Production aid for processed tomato products (Budget items B1-1511 in the 1998 EC Budget)

Production aid for fruit-based products (Budget items B1-1512 in the 1998 EC Budget)

Production aid and intervention for processed dried grape products (Budget items B1-1513 in the 1998 EC Budget)

Production aid for tinned pineapple (Budget items B1-1514 in the 1998 EC Budget)

Other fruit and vegetables intervention (Budget items B1-1519 in the 1998 EC Budget).

POSEIDOM (Reg. 89/687): payments to processors of fruits and vegetables and processing of rhum (Budget items B1-1830 in the 1998 EC Budget)

Free distribution of fruits and vegetables (Budget item B1-314 in the 1998 EC Budget).

Promotion of consumption (Budget item B1-164 in the 1996 EC Budget and B1-165 in the 1995 EC Budget): budgetary expenditures to promote the consumption of grape juice in accordance with Reg. 822/87, Article 46(4) and Reg. 1544/95 (Oj No L 148, 30/6/1995, p. 31).

Wine

Distillation of wine (Budget item B1-1611 in the 1998 EC Budget) and Compulsory distillation of the by-products of wine making (Budget item B1-1612 in the 1998 EC Budget): payments to distillers who have paid minimum price to producers of table wine to dispose the alcohol produced.

Olives

Table olives (Budget item B1-184 in the 1998 EC Budget): payment to market organisations or producer groups to finance stocks.

Distribution of agricultural products

Distribution of agricultural products to the most deprived persons in the Community (Budget item B1-310 in the 1998 EC Budget): In the absence of more detailed information, allocated to individual commodities according to their share of the value of the EU total agricultural production.

· National expenditures

BSE-related aid to downstream industries (UK, Slovenia): budgetary expenditures on support to the slaughtering, rendering and hide industries made since 1996/97 in the UK, 2002 in Slovenia.

S. Excess Feed Cost: associated with market price support on quantities domestically produced and used on-farm as feed as calculated in Table 2.

V.2 Percentage CSE [(V.1) / ((II) - (R)) x 100]

V.3 Consumer NAC [(1 / (100 - (V.2)) x 100]

VI. Total Support Estimate [(III.1) + (IV) + (R)] and [(T) + (U) - (V)]

T. Transfers from consumers [(P)+(Q)]

U. Transfers from taxpayers [(III.1)-(P)+(IV)+(R)]

V. Budget revenues (Q)

Source:

[1] EUROSTAT, NCRONOS, Economic Accounts for Agriculture, value of production at producer prices, final output.

[2] European Commission Budget: Guarantee and Guidance Sections, various years. National sources.